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BOARD OF EDUCATION

OF THE

TOWNSHIP OF WINSLOW

SCHOOL DISTRICT

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED

JUNE 30, 2016

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TOWNSHIP OF WINSLOW SCHOOL DISTRICT Table of Contents

Page

INTRODUCTORY SECTION Letter of Transmittal 2 Organizational Chart 7 Roster of Officials 8 Consultants and Advisors 9

FINANCIAL SECTION Independent Auditor's Report 11 Required Supplementary Information - Part I Management’s Discussion and Analysis 17 Basic Financial Statements A. Government-Wide Financial Statements: A-1 Statement of Net Position 25 A-2 Statement of Activities 26

B. Fund Financial Statements: Governmental Funds: B-1 Balance Sheet 28 B-2 Statement of Revenues, Expenditures and Changes in Fund Balances 29

B-3 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 30 Proprietary Funds: B-4 Statement of Net Position 31 B-5 Statement of Revenues, Expenses and Changes in Fund Net Position 32 B-6 Statement of Cash Flows 33 Fiduciary Funds: B-7 Statement of Fiduciary Net Position 34 B-8 Statement of Changes in Fiduciary Net Position N/A Notes to the Financial Statements 35 Required Supplementary Information - Part II

C. Budgetary Comparison Schedules

C-1 Budgetary Comparison Schedule - General Fund 72 C-1a Combining Schedule of Revenues, Expenditures and Changes In Fund Balance - Budget and Actual N/A C-1b Community Development Block Grant - Budget and Actual N/A C-2 Budgetary Comparison Schedule - Special Revenue Fund 83

C-3 Notes to Required Supplementary Information - Part II Budget-to-GAAP Reconciliation 85

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TOWNSHIP OF WINSLOW SCHOOL DISTRICT Table of Contents (Cont’d)

Page

Required Supplementary Information - Part III L. Schedules Related to Accounting and Reporting for Pensions L-1 Schedule of the School District’s Proportionate Share of the Net Pension Liability – PERS 87 L-2 Schedule of the School District’s Contributions – PERS 88 L-3 Schedule of the School District’s Proportionate Share of the Net Pension Liability – TPAF 89 L-4 Schedule of the School District’s Contributions – TPAF 90 L-5 Notes to the Required Supplementary Information - Part III GASB 68 Pension Changes 91

Required Supplementary Information - Part IV (if applicable) L-6 Schedule of Funding Progress for Health Benefits Plan N/A L-7 Notes to the Required Supplementary Information - Part IV N/A

Other Supplementary Information

D. School Based Budget Schedules:

D-1 Combining Balance Sheet N/A D-2 Blended Resource Fund - Schedule of Expenditures Allocated by Resource Type - Actual N/A D-3 Blended Resource Fund - Schedule of Blended Expenditures - Budget and Actual N/A

E. Special Revenue Fund:

E-1a- Combining Schedule of Program Revenues and Expenditures - E-1e Budgetary Basis 94 E-2 Preschool Education Aid Schedule(s) of Expenditures - Budgetary Basis 99

F. Capital Projects Fund:

F-1 Summary Schedule of Project Expenditures 101 F-2 Summary Schedule of Revenues, Expenditures, and Changes in Fund Balances 102 F-2a- F-2j Schedules of Project Revenues, Expenditures, Project Balance and Project Status 103

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Page Other Supplementary Information (Cont’d)

G. Proprietary Funds:

Enterprise Fund: G-1 Combining Statement of Net Position 114 G-2 Combining Statement of Revenues, Expenses and Changes in Fund Net Position 115 G-3 Combining Statement of Cash Flows 116 Internal Service Fund: G-4 Combining Statement of Net Position N/A G-5 Combining Statement of Revenues, Expenses and Changes in Fund Net Position N/A G-6 Combining Statement of Cash Flows N/A

H. Fiduciary Funds:

H-1 Combining Statement of Fiduciary Net Position 118 H-2 Combining Statement of Changes in Fiduciary Net Position N/A H-3 Student Activity Agency Fund Schedule of Receipts and Disbursements 119 H-4 Payroll Agency Fund Schedule of Receipts and Disbursements 120

I. Long-Term Debt:

I-1 Schedule of Serial Bonds 122 I-2 Schedule of Obligations under Capital Leases N/A I-3 Debt Service Fund Budgetary Comparison Schedule 123

STATISTICAL SECTION (Unaudited)

Introduction to the Statistical Section Financial Trends J-1 Net Position by Component 126 J-2 Changes in Net Position 127 J-3 Fund Balances - Governmental Funds 129 J-4 Changes in Fund Balances - Governmental Funds 130 J-5 General Fund Other Local Revenue by Source 131 Revenue Capacity J-6 Assessed Value and Estimated Actual Value of Taxable Property 133 J-7 Direct and Overlapping Property Tax Rates 134 J-8 Principal Property Taxpayers 135 J-9 Property Tax Levies and Collections 136 Debt Capacity J-10 Ratios of Outstanding Debt by Type 138 J-11 Ratios of General Bonded Debt Outstanding 139 J-12 Direct and Overlapping Governmental Activities Debt 140 J-13 Legal Debt Margin Information 141

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Page STATISTICAL SECTION (Unaudited) (Cont’d)

Demographic and Economic Information J-14 Demographic and Economic Statistics 143 J-15 Principal Employers 144 Operating Information J-16 Full-time Equivalent District Employees by Function/Program 146 J-17 Operating Statistics 147 J-18 School Building Information 148 J-19 Schedule of Required Maintenance Expenditures by School Facility 149 J-20 Insurance Schedule 150

SINGLE AUDIT SECTION

K-1 Report on Internal Control Over Financial Reporting and on Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 14 K-2 Report on Compliance for Each Major Program and Report on Internal Control Over Compliance Required By the Uniform Guidance and State of New Jersey Circular 15-08-OMB 152 K-3 Schedule of Expenditures of Federal Awards, Schedule A 155 K-4 Schedule of Expenditures of State Financial Assistance, Schedule B 157 K-5 Notes to the Schedules of Federal Awards and State Financial Assistance 161 K-6 Schedule of Findings and Questioned Costs 163 K-7 Summary Schedule of Prior Audit Findings 168

INTRODUCTORY SECTION

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WINSLOW TOWNSHIP BOARD OF EDUCATION40 Cooper Folly Road, Atco, New Jersey 08004-2620

Telephone: (856) 767-2850 Fax: (856) 768-2765

H. Major Poteat, Ed.D. Tyra McCoy-Boyle Superintendent Business Admin. /Board Sec.

November 1, 2016

Honorable President andMembers of the Board of EducationTownship of Winslow School DistrictCounty of CamdenAtco, New Jersey 08004

Dear Board Members:

The comprehensive annual financial report of the Winslow Township School District (District) for the fiscal year ended June 30, 2016, is hereby submitted. Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the management of the Board of Education (Board). To the best of our knowledge and belief, the data presented in this report is accurate in all material respects and is presented in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the District. All disclosures necessary to enable the reader to gain an understanding of the District's financial activities have been included.

The comprehensive annual f inancial r e p o r t is p resen ted in fou r sect ions: introductory, financial, statistical and single audit. The introductory section includes the transmittalletter, Management's Discussion and Analysis (MD&A), the District's organizational chart, and a listof principal officials. The financial section includes the general purpose financial statements and schedules, as well as the auditor's report thereon. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis. The District is required to undergo an annual single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of New Jersey Circular 15-08-0MB, "SingleAudit Policy for Recipients of Federal Grants, State Grants and State Aid". Information related to thissingle audit, including the auditor's report on compliance with requirements applicable to each majorprogram and internal control over compliance in accordance with Title 2 U.S. Code of Federal Regulations Part 200 and State of New Jersey Circular 15-08-0MB, are included in the single auditsection of this report.

EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER

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November 1, 2016Page 2

1. REPORTING ENTITY AND ITS SERVICES

The Township of Winslow was created by an act of the Senate and General Assembly on March 8, 1845. Winslow Township, created from a part of Gloucester Township, contains 57.4 square miles. The Winslow Township community is made up of the smaller towns of: Albion, Ancora, Atco, Blue Anchor, Braddock, Cedar Brook, Elm, Rosedale, Sicklerville, Tansboro, West Atco, Waterford Works, and Winslow. The western end of the Township has become mostly residential, while the eastern end still contains many family farms. The residential population of the community is approximately 39,500. The Winslow Township Municipal Building is located at 125 South Rt. 73 in the Braddock section of the Township and the Board of Education is located at 40 Coopers Folly Road in Atco.

Winslow Township School District, with a current enrollment of approximately 4,900 pupils and, in its current configuration as a PK-12 school district, was formed July 1, 2001 after the Lower Camden County Regional School District #1 (LCCR) was dissolved by public referendum in 1998. Prior to July 2001, the Winslow Township School District had a PK-6 grade level configuration with a pupil population of approximately 3,500, sending both junior and senior high school students to the LCCR Edgewood Junior and Senior High Schools.

The District is an independent reporting entity within the criteria adopted by the GASB as established by NCGA Statement No. 3. All funds and account groups of the District are included in this report. The Winslow Township Board of Education and its schools constitute the District's reporting entity.

The District provides a full range of educational services appropriate to grade levels Pre-Kthrough 12. These include regular, as well as special education for handicapped youngsters.

2. MAJOR INITIATIVES

The following initiatives have been supported by the Annual School District Budgets and were accomplished during this period:

o Textbook Adoptionso Expanded Super Kids Reading Programo AP Biology

o AP Psychology

o Environmental Science

o General Biology

o Sociology

o Chemistry

Street Law

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2. MAJOR INITIATIVES (CONT'D)

o Program Initiatives

o Life Skills Program – Middle School

o Environmental STEM Program – Middle Schoolo Journalism Class – Middle Schoolo Technology purchases of additional chromebookso Computers purchased for Science program

o Facilities

o HVAC upgrades at the Middle and High Schools

o Replaced unit ventilators in the Middle School

o Rehabilitation of the Courtyard Drainage – School #2

o Demolition of Buildings at Blue Anchor

o Window Replacement project at the Middle School

o Renovation of Environmental STEM classroom - Middle School

o Mulched all playgrounds

o Sanded and refinished gym floors in main and auxiliary gyms - School No. 5, 6,Middle School and High School

o Repainted parking lot lines and curbs throughout the district

o Transportation

o Purchased 7 new buses

o Purchased 4 new 7 passenger vans for transporting students

o Continued to Install/upgrade security cameras in the district’s bus fleet

o Installed new security camera systems at the bus garage

o Provided internet access at the bus garage

o Capital Improvements

Capital improvements continue to provide for maintaining our structures. The District is committed to several projects which include an addition to School #4, which will provide 11 new classrooms and a gym facility, the replacement of classroom floors in the older section of the High School and the updating of the front elevation of the High School, which includes a security entry and ADA upgrades.

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3. INTERNAL ACCOUNTING CONTROLS

The Administrative Staff (Management) of the District is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with Accounting Principles Generally Accepted in the United States of America (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognized that: (1) the cost of a control should not exceed the benefits likely to be derived: and (2) the valuation of costs and benefits requires estimates and judgments by Management.

As a recipient of federal awards and state financial assistance, the District also is responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is also subject to periodic evaluation by the District management.

As part of the District's single audit described earlier, tests are made to determine the adequacy of the internal control structure, including that portion related to federal and state financial assistance programs, as well as to determine that the District has complied with applicable laws and regulations.

4. BUDGETARY CONTROLS

In addition to internal accounting controls, the District maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the voters of the municipality. Annual appropriated budgets are adopted for the general fund, the special revenue fund, and the debt service fund. Project-length budgets are approved for the capital improvements accounted for in the capital projects fund. The final budget amount as amended for the fiscal year is reflected in the financial section.

An encumbrance accounting system is used to record outstanding purchase commitments on a line item basis. Open encumbrances at year-end are canceled or are included as reappropriations of fund balance in the subsequent year. Amounts to be reappropriated are reported as reservations of fund balance at June 30, 2016.

5. ACCOUNTING SYSTEM AND REPORTS

The District's accounting records reflect generally accepted accounting principles, as promulgated by the Governmental Accounting Standards Board (GASB). The accounting system of the District is organized on the basis of funds and account groups. These funds and account groups are explained in "Notes to the Financial Statements", Note 1.

6. DEBT ADMINISTRATION

At June 30, 2016 the District's outstanding debt issues included $10,410,000 of general obligation bonds.

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Revised: September 2015

Winslow Township Board of Education 2015-2016 Organizational Chart

Superintendent

Asst. Superintendent

Director – Student Support Services Director – Research Planning & Evaluation Technology Team

Dir. – Transp. Sodexo

Food Services Aramark

Maintenance & Custodial

Asst. Bus. Admin. Principal - #1

Payroll/Benefits

Acctg. Dept.

Board of Education

Principal - #2

Principal - #3

Principal - #4

Principal - #5

Principal - #6

Sp. Ed.

SAC

Guidance

CST

504

I&RS

Support Serv.

Nurses

Professional Dev.

NCLB

Testing

Early Child.

Title I

ESL Principal - MS

Principal - HS

Supv. - Math Supv. – Lang. Arts

Mission One (Aides)

Business Adm./ Bd. Secretary Director- Human Resources

Source4Teachers (Teachers)

Supv. – Technology Supv. – Stud. Support Serv.

Dir. – Special Projects

Supv. – Technology

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BOARD OF EDUCATION WINSLOW TOWNSHIP SCHOOL DISTRICT

WINSLOW, NEW JERSEY

ROSTER OF OFFICIALS

JUNE 30, 2016

Term Members of the Board of Education Title Expires Cheryl Pitts President 2018 Julie A. Peterson Vice President 2016 Paul A. Hilton 2017 Gail Watkins 2018 LaVonyia B. Wilson-Mitchell 2018 Lorraine Dredden 2017 Carlos Vascos 2017 Larry Blake 2016 Hassan Wilcox 2016 Other Officials H. Major Poteat, Ed.D. Superintendent Tyra McCoy-Boyle Board Secretary/School Business Administrator Howard Long, Jr. Esq. Solicitor

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BOARD OF EDUCATION WINSLOW TOWNSHIP SCHOOL DISTRICT

WINSLOW, NEW JERSEY

CONSULTANTS AND ADVISORS

JUNE 30, 2016

Architect/Engineer

Garrison Architects 713 Creek Road

Bellmawr, New Jersey 08031

Audit Firm

Bowman & Company LLP 601 White Horse Road

Voorhees, New Jersey 08043

Attorney

Wade, Long, Wood & Long, LLC 1250 Chews Landing Road, Suite 1 Laurel Springs, New Jersey 08021

Insurance Broker

Conner Strong & Buckelew 40 Lake Center Executive Park

401 Route 73 North Marlton, New Jersey 08053

Official Depositories

TD Bank 247 South White Horse Pike

Berlin, New Jersey 08009

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FINANCIAL SECTION

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INDEPENDENT AUDITOR'S REPORT

The Honorable President andMembers of the Board of EducationTownship of Winslow School DistrictCounty of Camden, New Jersey

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-typeactivities, each major fund, and the aggregate remaining fund information of the Township of Winslow School District, in the County of Camden, State of New Jersey, as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in compliance with audit requirements as prescribed by the Division of Administration and Finance, Department of Education, State of New Jersey. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the School District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Township of Winslow School District, in the County of Camden, State of New Jersey, as of June 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, schedule of the School District’s proportionate share of the net pension liability, and schedule of the School District’s contributions, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprisethe Township of Winslow School District’s basic financial statements. The introductory section, combining statements and related major fund supporting statements and schedules, and statistical section are presented for purposes of additional analysis, as required by the Division of Administration and Finance, Department of Education, State of New Jersey, and are not a required part of the basic financial statements. The accompanying schedules of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, are also presented for purposes of additional analysisand are not a required part of the basic financial statements.

The accompanying combining statements and related major fund supporting statements and schedules and schedules of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying combining statements and related major fund supporting statements and schedules and schedules of expenditures of federal awards and state financial assistance are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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The introductory section and statistical section listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated November 1, 2016 on our consideration of the Township of Winslow School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Township of Winslow School District's internal control over financial reporting and compliance.

Respectfully submitted,

BOWMAN & COMPANY LLPCertified Public Accountants& Consultants

Carol A. McAllisterCertified Public AccountantPublic School Accountant No. CS 238400

Voorhees, New JerseyNovember 1, 2016

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Exhibit K-1

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

INDEPENDENT AUDITOR’S REPORT


We have audited, in accordance with the auditing standards generally accepted in the United States of America,the standards applicable to financial statement audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and in compliance with audit requirements as prescribed by the Division of Administration and Finance, Department of Education, State of New Jersey, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Township of Winslow School District, in the County of Camden, State of New Jersey, as of and for the fiscal year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District’s basic financial statements, and have issued our report thereon dated November 1, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Township of Winslow School District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Township of Winslow School District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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26400 Exhibit K-1

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Township of Winslow School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, and audit requirements as prescribed by the Division of Administration and Finance, Department of Education, State of New Jersey.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and audit requirements as prescribed by the Division of Administration and Finance, Department of Education, State of New Jersey, and federal and state awarding agencies and pass-through entities, in considering the School District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.





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REQUIRED SUPPLEMENTARY INFORMATION

PART I

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Township of Winslow School DistrictManagement’s Discussion and Analysis

For the Fiscal Year Ended June 30, 2016(Unaudited)

As management of the Township of Winslow School District, we offer readers of the Township of Winslow School District’s financial statements this narrative overview and analysis of the financial activities of the Township of Winslow School District for the fiscal year ended June 30, 2016. The intent of this discussion and analysis is to look at the Township of Winslow School District’s financial performance as a whole; readers should also review the information furnished in our letter of transmittal, notes to the basic financial statements, and financial statements to enhance their understanding of the Township of Winslow School District’s financial performance.

Financial Highlights

Net Position - In total, Net Position increased $10,819,674 which represents a 14.6% increase from 2014-2015.

General Revenues – General revenues accounted for $93,252,166 in revenue or 73.1% of all revenues.Program specific revenues in the form of charges for services, and operating grants and contributions,accounted for $34,285,625 or 26.9% of total revenues of $127,537,791

The School District had $116,718,116 in expenses; $34,285,625 of these expenses were offset byprogram specific charges for services, grants or contributions.

Among major funds, the General Fund had $104,289,131 in revenues, $95,258,111 in expenditures and$10,817,250 in other financing uses. The General Fund’s balance decreased $1,786,229 from 2015.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Township of Winslow School District’s basic financial statements. The Township of Winslow School District’s basic financial statements comprise three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements themselves.

Government-wide Financial Statements - The government-wide financial statements are designed to provide readers with a broad overview of the Township of Winslow School District’s finances, in a manner similar to a private-sector business.

The statement of net position (A-1) presents information on all of the Township of Winslow School District’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as auseful indicator of whether the financial position of the Township of Winslow School District is improving or deteriorating.

The statement of activities (A-2) presents information showing how the Township of Winslow School District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused sick leave).

Both of the government-wide financial statements distinguish functions of the Township of Winslow School District that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Township of Winslow School District include the education of students in grades Pre-K through 12 at the Township of Winslow School District's eight schools. The business-type activities of the Township of Winslow School District include a food service program and a before-after school child care program. The District ceased operating the Regional Day School effective June 20, 2011.

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For the Fiscal Year Ended June 30, 2016(Unaudited) (Cont’d)

Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Township of Winslow School District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Township of Winslow School District can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds - Most of the Township of Winslow School District’s activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in the future periods. These funds are reported using an accounting method called modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Township of Winslow School District’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs.

The Township of Winslow School District maintains four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, special revenue fund, capital projects fund and the debt service fund, all of which are considered to be major funds.

The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements.

Also, the Township of Winslow School District adopts an annual budget for each of its governmental funds with the exception of the capital projects fund. Budgetary comparison schedules have been provided for each to demonstrate compliance with the budgets.

Proprietary Funds – Proprietary funds are used to account for ongoing organizations and activities, which are operated and financed in a manner similar to those found in the private sector. There are two types of proprietary funds; enterprise funds and internal services funds. The Township of Winslow School District only uses enterprise funds. Enterprise funds are used to report an activity for which a fee is charged to external users for goods or services. The District uses enterprise funds to account for its food service and before-after school child care program.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the food service and before-after school child care programs.

Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the governmental entity. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Township of Winslow School District’s own programs. The District uses trust and agency funds to account for resources held for student activities and groups, and for payroll transactions.

Notes to the Financial Statement - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

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Government-wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Township of Winslow School District, assets and deferred outflows of resources exceeded liabilitiesand deferred inflows of resources by $85,145,088 at the close of the most recent fiscal year. The table below provides a summary of the School District’s net position for June 30, 2016 and 2015.

June 30, 2016 June 30, 2015(Restated)

Current and Other Assets 34,870,307$ 31,157,562$

Capital Assets 80,132,442 76,113,867

Total Assets 115,002,749 107,271,429

Deferred Loss on Defeasance of Debt 480,482 604,477 Related to Pensions 2,727,242 1,252,658

Total Deferred Outflows of Resources 3,207,724 1,857,135

Other Liabilities 4,718,880 5,551,310 Noncurrent Liabilities 27,535,380 28,510,548

Total Liabilities 32,254,260 34,061,858

Deferred Inflows of ResourcesRelated to Pensions 811,125 741,293

Net Position:

Invested in Capital Assets,

net of related debt 69,612,671 62,895,738 Restricted 31,465,712 27,578,078 Unrestricted (15,933,295) (16,148,403)

Total Net Position 85,145,088$ 74,325,413$

Winslow Township School DistrictNet Position

19



The table below reflects changes in net position for 2016 and 2015. 2016 2015

Revenues:

Program Revenues:

Charges for Services 5,618,104$ 1,661,292$

Operating Grants & Contributions 28,667,521 18,239,284

General Revenues:

Property Taxes 47,292,440 46,667,561

Federal & State Aid Not Restricted 44,756,883 41,233,297

Federal & State Aid Restricted 631,651 5,240,926

Local Share of Capital Projects 3,757,063

Tuition 3,594,001

Other 571,192 387,646

Total Revenues 127,537,791 120,781,069

Program Expenses

Governmental Activities:

Instruction:

Regular 28,195,541 27,848,037

Special Education 9,317,847 9,215,624

Other Special Education 1,780,453 1,766,258

Support Services:

Tuition 6,552,692 6,564,838

Student & Instruction Related Services 10,567,715 10,427,942

General Administrative Services 951,311 997,016

School Administrative Services 3,408,837 3,442,819

Plant Operation and Maintenance 8,526,263 8,768,750

Central Services 1,000,939 1,087,314

Administrative Information Technology 846,775 742,704

Pupil Transportation 7,656,986 7,487,815

Unallocated Benefits 33,375,250 28,477,070

Special Schools

Transfer of Funds to Charter School 472,183 475,013

Debt Service 354,077 470,341

Building Depreciation 553,245 550,795

Total Expenses, Governmental Activities 113,560,114 108,322,335

Business-type Activities:

Food Service 2,511,813 2,266,034

After School Child Care 646,190 610,841

Total Expenses Business-Type Activities 3,158,003 2,876,875

Total Expenses 116,718,117 111,199,210

Increase in Net Position 10,819,674 9,581,859

Net Position, July 1 74,325,413 64,793,832

Prior Period Adjustment - Adjustment to Accounts

Receivable Balance (50,279)

Net Position, June 30 85,145,087$ 74,325,413$

20



The largest portion of the District's net position reflects its investment in capital assets (e.g., land, buildingsand improvements, and furniture and equipment); less any related debt (general obligation bonds payableless unspent bond proceeds) used to acquire those assets that are still outstanding. The District uses thesecapital assets to provide services to students; consequently, these assets are not available for futurespending. Although the District's investment in its capital assets is reported net of related debt, it should benoted that the resources needed to repay this debt must be provided from other sources, since the capitalassets themselves cannot be used to liquidate these liabilities.

An additional portion of the District's net position represents resources that are subject to external restrictionson how they may be used. The remaining balance of unrestricted net position, if any, may be used to meetthe District's ongoing obligations to students, employees, and creditors.

Financial Analysis of the District’s Funds

As stated earlier, the Township of Winslow School District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds - The focus of the Township of Winslow School District’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Township of Winslow School District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the District’s governmental funds reported combined ending fund balancesof $29,241,698, an increase of $4,052,986 from the prior year.

Of the combined ending funding balances of $29,241,698, ($2,224,014) constitutes unassigned (deficit) fund balance (does not include final state aid payments of $4,318,314) The remainder of fund balance is either restricted or assigned as indicated that it is not available for new spending because it has already been committed. For example, to liquidate contracts and purchase orders of the prior period fund balance of $2,871,920 is assigned.

The general fund is the main operating fund in the District. At the end of the current fiscal year, unassigned (deficit) fund balance of the general fund was ($2,154,359) (does not include final state aid payments of $4,248,659), while total fund balance was $19,712,447.73. The fund balance of the District’s general fund at June 30, 2016 decreased by $1,786,229 over the previous year.

The capital projects fund has a total fund balance of $9,598,904 which will be utilized to complete improvements and renovations to District schools as approved in the previous years’ budgets. This fund balance at June 30, 2016 has increased by $6,047,019 over the previous year.

Proprietary Funds - The District’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net positions in the food service and before and after school programs were $874,505 and $915,635 compared to $690,563 and $619,306 in the prior year. Other factors concerning the finance of this fund have already been addressed in the discussion of the District’s business-type activities.

21



Capital Asset and Debt Administration

Capital AssetsThe Township of Winslow School District’s investment in capital assets for its governmental and business-type activities as of June 30, 2016 amounts to $80,132.442 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, land improvements, buildings and improvements, and equipment.

June 30, 2016 June 30, 2015

Land and Land Improvements 5,030,407$ 5,048,797$ Construction in Progress 7,298,954 1,019,282 Building and Building Improvements 107,540,468 107,708,078 Furniture and Equipment 16,057,275 14,708,818

Total Capital Assets 135,927,104 128,484,975 Less: Accumulated Depreciation (55,794,662) (52,371,108)

Net Capital Assets 80,132,442$ 76,113,867$

Winslow Township School DistrictCapital Assets

Additional information on the Township of Winslow School District’s capital assets can be found in Note 7.

Long-term Debt AdministrationAdditional information on the District's long-term debt can be found in Note 8 to the basic financial statements.

Economic Factors

For the 2015-16 school year, the Township of Winslow School District was able to sustain its budget through the township tax levy, federal aid, state aid and miscellaneous revenue sources. Despite unpredictable funding from the State of New Jersey, the district manages to provide an excellent educational opportunity for all the School District students. The School District’s budget has grown steadily over the past 5 years. The 2010-2011 budget reflected a spending plan of $100,321,022, the 2015-2016 budget contemplates spending $108,508,151, an increase of 8.2%. These increases are the result of salary increases and cost increases for health benefits and property insurances.

Requests for Information

This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Office of the School Business Administrator at:

Winslow Township Board of Education40 Coopers Folly RoadAtco, NJ 08004

22

BASIC FINANCIAL STATEMENTS

23

GOVERNMENT-WIDE FINANCIAL STATEMENTS

24

26400 Exhibit A-1

TOWNSHIP OF WINSLOW SCHOOL DISTRICT

Statement of Net Position

Governmental Business-TypeActivities Activities Total

ASSETS:

Cash and Cash Equivalents 3,575,019.74$ 1,723,413.20$ 5,298,432.94$ Receivables, net 6,934,474.56 224,128.01 7,158,602.57Prepaid Expenses 5,116.25 5,116.25Inventory 92,666.91 92,666.91Restricted Cash and Cash Equivalents 22,315,487.73 22,315,487.73Capital Assets, net 80,028,212.00 104,230.38 80,132,442.38

Total Assets 112,853,194.03 2,149,554.75 115,002,748.78

DEFERRED OUTFLOWS OF RESOURCES:

Deferred Loss on Defeasance of Debt 480,481.87 480,481.87Related to Pensions (Note 10) 2,727,242.00 2,727,242.00

Total Deferred Outflows of Resources 3,207,723.87 - 3,207,723.87

LIABILITIES:

Accounts Payable: Other 2,811,200.58 315,191.90 3,126,392.48 Related to Pensions 615,470.00 615,470.00Contracts Payable 6,537.90 6,537.90Other Current Liabilities 150,877.98 150,877.98Payable to State Government 78,716.12 78,716.12Accrued Interest 160,710.42 160,710.42Unearned Revenue 535,952.01 44,223.04 580,175.05Noncurrent Liabilities: Due within One Year 2,857,712.20 2,857,712.20 Due beyond One Year 24,677,668.17 24,677,668.17

Total Liabilities 31,894,845.38 359,414.94 32,254,260.32

DEFERRED INFLOWS OF RESOURCES:

Related to Pensions (Note 10) 811,125.00 - 811,125.00

NET POSITION:

Net Investment in Capital Assets 69,508,440.79 104,230.38 69,612,671.17Restricted for: Other Purposes 21,866,806.59 21,866,806.59 Capital Projects 9,598,903.73 9,598,903.73 Debt Service 1.28 1.28Unrestricted (Deficit) (17,619,204.87) 1,685,909.43 (15,933,295.44)

Total Net Position 83,354,947.52$ 1,790,139.81$ 85,145,087.33$

The accompanying Notes to Financial Statements are an integral part of this statement.

June 30, 2016

25

26400 Exhibit A-2

Statement of Activities

Net (Expense) Revenue

and Changes in

Program Revenues Net Position

Operating Capital

Charges for Grants and Grants and Governmental Business-Type

Functions / Programs Expenses Services Contributions Contributions Activities Activities Total


Instruction:

Regular Instruction 28,195,540.58$ 3,637,579.52$ 3,406,466.67$ (21,151,494.39)$ (21,151,494.39)$

Special Education Instruction 9,317,846.55 (9,317,846.55) (9,317,846.55)

Other Special Instruction 1,780,453.16 (1,780,453.16) (1,780,453.16)

Support Services:

Tuition 6,552,692.18 (6,552,692.18) (6,552,692.18)

Student and Instruction Related Services 10,567,715.15 1,343,332.35 (9,224,382.80) (9,224,382.80)

General Administration 951,310.95 (951,310.95) (951,310.95)

School Administration 3,408,836.89 (3,408,836.89) (3,408,836.89)

Central Services 1,000,939.29 (1,000,939.29) (1,000,939.29)

Administration Information Technology 846,775.03 (846,775.03) (846,775.03)

Plant Operations and Maintenance 8,526,262.62 (8,526,262.62) (8,526,262.62)

Pupil Transportation 7,656,985.56 168,988.75 (7,487,996.81) (7,487,996.81)

Unallocated Benefits 33,375,249.95 20,673,377.70 (12,701,872.25) (12,701,872.25)

Transfer to Charter School 472,183.00 (472,183.00) (472,183.00)

Interest on Long-Term Debt 354,076.72 1,429,048.00 1,074,971.28 1,074,971.28

Building Depreciation 553,245.00 (553,245.00) (553,245.00)

Total Governmental Activities 113,560,112.63 3,806,568.27 26,852,224.72 - (82,901,319.64) - (82,901,319.64)

Business-Type Activities:

Food Service 2,511,813.37 869,017.24 1,815,295.88 172,499.75$ 172,499.75

Before-After School Program 646,190.31 942,518.94 296,328.63 296,328.63

Total Business-Type Activities 3,158,003.68 1,811,536.18 1,815,295.88 - - 468,828.38 468,828.38

Total Primary Government 116,718,116.31$ 5,618,104.45$ 28,667,520.60$ -$ (82,901,319.64) 468,828.38 (82,432,491.26)

General Revenues:

Taxes:

Property Taxes, Levied for General Purposes, net 45,799,758.00 45,799,758.00

Taxes Levied for Debt Service 1,492,682.00 1,492,682.00

Federal and State Aid not Restricted 44,756,882.75 44,756,882.75

Federal and State Aid Restricted 631,650.70 631,650.70

Miscellaneous Income 538,628.99 538,628.99

Gain/Loss on Disposal of Capital Assets 21,120.99 11,442.27 32,563.26

Total General Revenues and Gain/Loss on Disposal of Capital Assets 93,240,723.43 11,442.27 93,252,165.70

Change in Net Position 10,339,403.79 480,270.65 10,819,674.44

Net Position -- July 1 (Restated) 73,015,543.73 1,309,869.16 74,325,412.89

Net Position -- June 30 83,354,947.52$ 1,790,139.81$ 85,145,087.33$


For the Fiscal Year Ended June 30, 2016


26

FUND FINANCIAL STATEMENTS

27

26400 Exhibit B-1

Governmental FundsBalance Sheet

Special Capital Debt TotalGeneral Revenue Projects Service Governmental

Fund Fund Fund Fund FundsASSETS:Cash and Cash Equivalents 3,575,019.74$ 14,630.94$ 8,397,140.37$ 1.28$ 11,986,792.33$ Receivables, net 940,800.17 3,360.00 944,160.17Due from Other Funds 89,951.13 89,951.13Receivables from Other Governments 3,570,257.68 826,293.80 1,508,848.78 5,905,400.26Restricted Cash 13,903,715.14 13,903,715.14

Total Assets 22,079,743.86$ 844,284.74$ 9,905,989.15$ 1.28$ 32,830,019.03$

LIABILITIES AND FUND BALANCES:Liabilities: Accounts Payable 2,216,418.15$ 294,234.91$ 300,547.52$ 2,811,200.58$ Contracts Payable 6,537.90 6,537.90 Interfunds Payable 52,846.37 5,037.00 57,883.37 Other Current Liabilities 98,031.61 98,031.61 Payable to State Government 78,716.12 78,716.12 Unearned Revenue 535,952.01 535,952.01

Total Liabilities 2,367,296.13 913,940.04 307,085.42 - 3,588,321.59

Fund Balances: Restricted: Capital Reserve 11,899,759.34 11,899,759.34 Maintenance Reserve 2,003,955.80 2,003,955.80 Capital Projects 9,598,903.73 9,598,903.73 Debt Service 1.28$ 1.28 Excess Surplus -- Designated for Subsequent Year's Expenditures 2,213,981.00 2,213,981.00 Excess Surplus 2,649,120.00 2,649,120.00 Assigned: Subsequent Year's Expenditures - SEMI ARRA 85,665.78 85,665.78 Subsequent Year's Expenditures - - SEMI FY13-14 Cost Settlement 142,404.74 142,404.74 Other Purposes 2,871,919.93 2,871,919.93 Unassigned (Deficit) (2,154,358.86) (69,655.30) (2,224,014.16)

Total Fund Balances 19,712,447.73 (69,655.30) 9,598,903.73 1.28 29,241,697.44

Total Liabilities and Fund Balances 22,079,743.86$ 844,284.74$ 9,905,989.15$ 1.28$

Amounts reported for governmental activities in the statement ofnet position (A-1) are different because:

Capital assets used in governmental activities are not financialresources and therefore are not reported in the funds. The cost of the assets is $134,954,218.00 and the accumulated depreciation is $54,926,006.00 80,028,212.00

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported asliabilities in the funds. (13,447,662.37)

Losses arising from the issuance of refunding bonds that are a result of the differencein the carrying value of the refunded bonds and the new bonds are deferred andamortized over the life of the new bonds. 480,481.87

Interest on long term debt in the statement of activities is accrued, regardless when due. (160,710.42)

Net pension liability (14,087,718.00)

Accounts payable related to the April 1, 2017 required PERS pension contributionthat is not to be liquidated with current financial resources. (615,470.00)

Deferred outflows of resources - related to pensions 2,727,242.00

Deferred inflows of resources -related to pensions (811,125.00)

Net position of governmental activities 83,354,947.52$


June 30, 2016


28

26400 Exhibit B-2

Governmental FundsStatement of Revenues, Expenditures and Changes in Fund Balances

Special Capital Debt TotalGeneral Revenue Projects Service Governmental

Fund Fund Fund Fund FundsREVENUES:

Local Tax Levy 45,799,758.00$ 1,492,682.00$ 47,292,440.00$ Tuition Charges 3,637,579.52 3,637,579.52Transportation Fees 168,988.75 168,988.75Miscellaneous 500,399.31 38,229.68$ 538,628.99State Sources 53,870,252.10 1,489,949.44 624,640.18$ 1,429,048.00 57,413,889.72Federal Sources 312,153.43 3,197,456.02 3,509,609.45

Total Revenues 104,289,131.11 4,725,635.14 624,640.18 2,921,730.00 112,561,136.43

EXPENDITURES:

Current: Regular Instruction 24,625,549.91 3,406,466.67 28,032,016.58 Special Education Instruction 9,317,846.55 9,317,846.55 Other Special Instruction 1,780,453.16 1,780,453.16 Support Services and Undistributed Costs: Tuition 5,209,359.83 1,343,332.35 6,552,692.18 Student and Instruction Related Services 10,552,605.15 10,552,605.15 General Administration 947,832.95 947,832.95 School Administration 3,408,537.89 3,408,537.89 Central Services 1,000,435.29 1,000,435.29 Administration Information Technology 695,021.03 695,021.03 Plant Operations and Maintenance 6,362,979.62 6,362,979.62 Pupil Transportation 7,027,509.56 7,027,509.56 Unallocated Benefits 21,524,574.72 21,524,574.72 Transfer to Charter School 472,183.00 472,183.00Debt Service: Principal 2,670,000.00 2,670,000.00 Interest and Other Charges 428,359.38 428,359.38Capital Outlay 2,333,221.84 7,010.52 5,394,871.65 7,735,104.01

Total Expenditures 95,258,110.50 4,756,809.54 5,394,871.65 3,098,359.38 108,508,151.07

Excess (Deficit) of Revenues over Expenditures 9,031,020.61 (31,174.40) (4,770,231.47) (176,629.38) 4,052,985.36

OTHER FINANCING SOURCES (USES): Transfer to Capital Projects Fund (10,817,250.00) 10,817,250.00 -

Total Other Financing Sources (Uses) (10,817,250.00) - 10,817,250.00 - -

Net Change in Fund Balances (1,786,229.39) (31,174.40) 6,047,018.53 (176,629.38) 4,052,985.36

Fund Balance -- July 1 21,498,677.12 (38,480.90) 3,551,885.20 176,630.66 25,188,712.08

Fund Balance -- June 30 19,712,447.73$ (69,655.30)$ 9,598,903.73$ 1.28$ 29,241,697.44$




29

26400 Exhibit B-3

Reconciliation of the Statement of Revenues, Expendituresand Changes in Fund Balances of Governmental Funds

to the Statement of Activities

Total Net Change in Fund Balances - Governmental Funds 4,052,985.36$

Amounts reported for governmental activities in the statementof activities (A-2) are different because:

Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.This is the amount by which capital outlays exceeded depreciation in the period.

Depreciation Expense (3,695,729.00)$ Debt Service Assessment Charged to Capital Outlay (26,043.00) Capital Outlays 7,735,104.01

4,013,332.01

Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduceslong-term liabilities in the statement of net position and is not reported in the statement of activities. 2,670,000.00

The issuance of long-term debt (bonds) provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereasthese amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. 28,357.95

Interest on long-term debt in the statement of activities is accrued, regardless of when due. In thegovernmental funds, interest is reported when due. This amount is the net effect of the difference in the treatment of interest on long-term debt. 71,967.71

The net effect of gain on disposal of capital assets. 21,120.99

In the statement of activities, certain operating expenses, e.g., compensated absences (vacations) aremeasured by the amounts earned during the year. In the governmental funds, however, expendituresfor these items are reported in the amount of financial resources used (paid). When the earned amountexceeds the paid amount, the difference is reduction in the reconciliation (-);when the paid amount exceeds the earned amount the difference is an addition to the reconciliation (+). (198,403.23)

Governmental funds report School District pension contributions as expenditures. However in the statement ofactivities, the cost of pension benefits earned is reported as pension expense. This is the amount bywhich pension benefits earned exceeded the School District's pension contributions in the current period. (319,957.00)

Change in Net Position of Governmental Activities 10,339,403.79$




30

26400 Exhibit B-4

Proprietary FundsStatement of Net Position

Business-Type Activities -

Food Before-AfterService School Program Totals

ASSETS:

Current Assets: Cash and Cash Equivalents 738,095.90$ 985,317.30$ 1,723,413.20$ Accounts Receivable: State 3,707.47 3,707.47 Federal 114,773.92 114,773.92 Other 16,024.81 74,288.10 90,312.91 Interfund Accounts Receivable: Due Before and After School 6,029.60 6,029.60 Due Students, Net 15,333.71 15,333.71 Prepaid Expenses 5,116.25 5,116.25 Inventories 92,666.91 92,666.91

Total Current Assets 986,632.32 1,064,721.65 2,051,353.97

Noncurrent Assets: Equipment 972,886.38 972,886.38 Less Accumulated Depreciation (868,656.00) (868,656.00)

Total Noncurrent Assets 104,230.38 - 104,230.38

Total Assets 1,090,862.70 1,064,721.65 2,155,584.35

LIABILITIES:

Current Liabilities: Interfund Accounts Payable: Due General Fund 56,352.13 26,693.20 83,045.33 Due Food Service 6,029.60 6,029.60 Accounts Payable 160,005.55 72,141.02 232,146.57 Unearned Revenue 44,223.04 44,223.04

Total Liabilities 216,357.68 149,086.86 365,444.54

NET POSITION:

Net Investment in Capital Assets 104,230.38 104,230.38Unrestricted 770,274.64 915,634.79 1,685,909.43

Total Net Position 874,505.02$ 915,634.79$ 1,790,139.81$


Enterprise Funds

June 30, 2016


31

26400 Exhibit B-5

Proprietary FundsStatement of Revenues, Expenses and Changes in Fund Net Position

Business-Type Activities - Enterprise Fund

Food Before-After TotalService School Program Enterprise

OPERATING REVENUES:

Charges for Services: Daily Sales - Reimbursable Programs 397,475.10$ 397,475.10$ Daily Sales - Non-Reimbursable Programs 420,342.24 420,342.24 Other Sales 51,199.90 51,199.90 Tuition 942,518.94$ 942,518.94

Total Operating Revenues 869,017.24 942,518.94 1,811,536.18

OPERATING EXPENSES:

Management Fees 169,054.84 169,054.84Salaries 757,448.27 73,540.93 830,989.20Employee Benefits 224,709.43 27,220.54 251,929.97Other Purchased Services 60,107.89 512,542.16 572,650.05General Supplies 142,074.50 14,886.68 156,961.18Depreciation 23,478.00 23,478.00Cleaning, Repairs and Maintenance 33,307.02 18,000.00 51,307.02Insurance 32,729.30 32,729.30Cost of Sales - Reimbursable Programs 893,496.95 893,496.95Cost of Sales - Non-Reimbursable Programs 175,407.17 175,407.17

Total Operating Expenses 2,511,813.37 646,190.31 3,158,003.68

Operating Income / (Loss) (1,642,796.13) 296,328.63 (1,346,467.50)

NONOPERATING REVENUES (EXPENSES):

State Sources: State School Lunch Program 27,609.66 27,609.66Federal Sources: National School Lunch Program 1,255,454.61 1,255,454.61 National School Breakfast Program 287,057.41 287,057.41 Summer Food Service Program 54,666.92 54,666.92 Food Distribution Program 190,507.28 190,507.28Gain on Disposal of Equipment 11,442.27 11,442.27

Total Nonoperating Revenues (Expenses) 1,826,738.15 - 1,826,738.15

Change in Net Position 183,942.02 296,328.63 480,270.65

Net Position -- July 1 690,563.00 669,584.71 1,360,147.71

Prior Period Adjustment - (50,278.55) (50,278.55)

Net Position -- July 1 (Restated) 690,563.00 619,306.16 1,309,869.16

Net Position -- June 30 874,505.02$ 915,634.79$ 1,790,139.81$




32

26400 Exhibit B-6

Proprietary Funds

Statement of Cash Flows

Business-Type Activities -

Enterprise Funds

Food Before-After Total

Service School Program Enterprise

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from Customers 850,627.02$ 919,880.94$ 1,770,507.96$

Payments to Employees (757,448.27) (46,847.73) (804,296.00)

Payments for Employee Benefits (224,709.43) (27,220.54) (251,929.97)

Payments to Suppliers (1,689,171.47) (539,223.63) (2,228,395.10)

Net Cash Provided by (used for) Operating Activities (1,820,702.15) 306,589.04 (1,514,113.11)

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

State Sources 26,554.95 26,554.95

Federal Sources 1,785,163.25 1,785,163.25

Net Cash Provided by (used for) Non-Capital Financing Activities 1,811,718.20 - 1,811,718.20

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Gain on Disposal of Equipment 11,442.27 11,442.27

Purchases of Capital Assets (7,600.00) (7,600.00)

Net Cash Provided by (used for)

Capital and Related Financing Activities 3,842.27 - 3,842.27

Net Increase (Decrease) in Cash and Cash Equivalents (5,141.68) 306,589.04 301,447.36

Cash and Cash Equivalents -- July 1 743,237.58 678,728.26 1,421,965.84

Cash and Equivalents -- June 30 738,095.90$ 985,317.30$ 1,723,413.20$

Reconciliation of Operating Income (Loss) to Net Cash Provided by

(Used in) Operating Activities:

Operating Income (Loss) (1,642,796.13)$ 296,328.63$ (1,346,467.50)$

Adjustments to Reconcile Operating Income (Loss) to Net Cash

Provided by (used for) Operating Activities:

Depreciation 23,478.00 23,478.00

(Increase) Decrease in Accounts Receivable Other (8,520.14) (18,032.09) (26,552.23)

(Increase) Decrease in Interfunds Receivable (4,063.60) (4,063.60)

(Increase) Decrease in Due Students, Net (5,806.48) (5,806.48)

(Increase) Decrease in Inventories (40,645.30) (40,645.30)

(Increase) Decrease in Prepaid Expenses 478.34 478.34

Increase (Decrease) in Accounts Payable (192,993.95) 36,572.93 (156,421.02)

Increase (Decrease) in Interfund Payable 50,645.45 (4,152.86) 46,492.59

Increase (Decrease) in Other Current Liabilities (4,605.91) (4,605.91)

Total Adjustments (177,906.02) 10,260.41 (167,645.61)

Net Cash Provided by (used for) Operating Activities (1,820,702.15)$ 306,589.04$ (1,514,113.11)$




33

26400 Exhibit B-7

Fiduciary FundsStatement of Fiduciary Net Position

Agency Funds

StudentActivity Payroll

ASSETS:

Cash and Cash Equivalents 134,861.55$ 472,541.75$ Accounts Receivable 662.85Interfund Accounts Receivable: Due General Fund 50,977.57

Total Assets 134,861.55$ 524,182.17$

LIABILITIES:

Payable to Student Groups 134,861.55$ Payroll Deductions and Withholdings 524,182.17$

Total Liabilities 134,861.55$ 524,182.17$



June 30, 2016

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26400

TOWNSHIP OF WINSLOW SCHOOL DISTRICTNotes to Financial Statements


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Township of Winslow School District (the “School District”) have been prepared to conform with accounting principles generally accepted in the United States of America (“GAAP”) as applied to governmental units. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant of these policies.

Description of the Financial Reporting Entity

The School District is a Type II district located in the County of Camden, State of New Jersey. As a Type II district, the School District functions independently through a Board of Education (the “Board”). The Board is comprised of nine members elected to three-year terms. These terms are staggered so that three member's terms expire each year. The Superintendent is appointed by the Board to act as executive officer of the School District. The purpose of the School District is to educate students in grades Pre-K through 12 at its eight schools. The School District has an approximate enrollment at June 30, 2016 of 4,903.

The primary criterion for including activities within the School District's reporting entity, as set forth in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards, is the degree of oversight responsibility maintained by the School District. Oversight responsibility includes financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. The combined financial statements include all funds of the School District over which the Board exercises operating control.

Component Units

In evaluating how to define the School District for financial reporting purposes, management has considered all potential component units. The decision to include any potential component units in the financial reporting entity was made by applying the criteria set forth in GASB Statements No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations are Component Units, and GASB Statement No. 61, The Financial Reporting Entity: Omnibus - an amendment of GASB Statements No. 14 and No. 34. Blended component units, although legally separate entities, are in-substance part of the government's operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the government.

The basic-but not the only-criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and / or its citizens.

A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. Finally, the nature and significance of a potential component unit to the primary government could warrant its inclusion within the reporting entity.

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26400 Notes to Financial Statements (Cont'd)

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

Component Units (Cont’d)

Based upon the application of these criteria, the School District has no component units, and is not a component unit of another governmental agency.

Government-wide and Fund Financial Statements

The School District’s basic financial statements consist of government-wide statements, and fund financial statements which provide a more detailed level of financial information.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities,which normally are supported by property taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are specifically associated with a service, program, or department and, therefore, clearly identifiable to a particular function. It is the policy of the School District to not allocate indirect expenses to functions in the statement of activities. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Property taxes and other items not properly included among program revenues are reported instead as general revenues.

In regards to the fund financial statements, the School District segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. Fund financial statements report detailed information about the School District. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a single column. Fiduciary funds are reported by fund type.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financialstatements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Property taxes are recognized as revenues in the year for which they are levied. The Camden County Board of Taxation is responsible for the assessment of properties, and the respective municipal tax collector is responsible for the collection of property taxes. Assessments are certified and property taxes are levied on January 1. Property tax payments are due February 1, May 1, August 1 and November 1. Unpaid property taxes are considered delinquent the following January 1 and are then subject to municipal lien. In accordance with New Jersey State Statute, the School District is entitled to receive moneys under an established payment schedule, and any unpaid amount is considered as an accounts receivable. The governing body of each municipality is required to pay over to the School District, within forty (40) days after the beginning of the school year, twenty percent (20%) of the moneys from school tax due. Thereafter, but prior to the last day of the school year, the municipality must pay the balance of moneys from school tax due for school purposes in such amounts as requested, with certain limitations, from time to time by the School District, within thirty days after each request.

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Measurement Focus, Basis of Accounting and Financial Statement Presentation (Cont’d)

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are deemed both available and measurable. Available means when revenues are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the School District considers revenues to be available if they are collected within sixty (60) days of the end of the current fiscal year. Measurable means that the amount of revenue can be determined. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, tuition, reimbursable-type grants, and interest associated with the current fiscal year are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal year. All other revenue items are considered to be measurable and available only when cash is received by the School District.

The School District reports the following major governmental funds:

General Fund - The general fund is the primary operating fund of the School District. It is used to account for all financial resources except those required to be accounted for in another fund. Included are certain expenditures for vehicles and movable instructional or non-instructional equipment classified in the capital outlay sub-fund.

As required by the New Jersey State Department of Education, the School District includes budgeted capital outlay in this fund. Accounting principles generally accepted in the United States of America,as they pertain to governmental entities, state that general fund resources may be used to directly finance capital outlays for long-lived improvements as long as the resources in such cases are derived exclusively from unrestricted revenues.

Resources for budgeted capital outlay purposes are normally derived from State of New Jersey aid, ad valorem tax revenues, and appropriated fund balance. Expenditures are those which result in the acquisition of or additions to capital assets for land, existing buildings, improvements of grounds, construction of buildings, additions to, or remodeling of buildings, and the purchase of built-in equipment.

Special Revenue Fund - The special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.

Capital Projects Fund - The capital projects fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets, other than those financed by proprietary funds. The financial resources are derived from New Jersey Economic Development Authority grants, temporary notes, serial bonds which are specifically authorized by the voters as a separate question on the ballot either during the annual election or at a special election, or from the general fund by way of transfers from capital outlay or the capital reserve account.

Debt Service Fund - The debt service fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest.

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Measurement Focus, Basis of Accounting and Financial Statement Presentation (Cont’d)

Proprietary funds are used to account for the School District’s ongoing organizations and activities, which are operated and financed in a manner similar to those found in the private sector. The measurement focus is upon the determination of net income. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All items not meeting this definition are reported as nonoperating revenues and expenses.

The School District reports the following major proprietary funds:

Food Service Fund - This fund accounts for the financial transactions related to the food service operations of the School District.

Before and After School Program Fund - This fund accounts for the financial activity related to providing day care services for School District students before school, after school and during the summer.

Fiduciary funds are used to account for assets held by the School District on behalf of outside related organizations or on behalf of other funds within the School District. The fiduciary fund category is split into four classifications: pension trust funds, investment trust funds, private-purpose trust funds, and agency funds.

The School District maintains the following fiduciary funds:

Agency Funds - Agency funds are used to account for assets held by the School District in a trustee capacity or as an agent for individuals, private organizations, other governments, and / or other funds (i.e., payroll and student activities). The School District retains no equity interest in these funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The School District maintains the following agency funds: student activity fund and payroll fund.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements.

Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all property taxes.

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Budgets / Budgetary Control

Annual appropriated budgets are prepared in the spring of each fiscal year for the general, special revenue, and debt service funds, and are submitted to the county office of education. In accordance with P.L. 2011, c. 202, the School District passed a resolution to move the school board election to the first Tuesday after the first Monday in November, starting in November of 2012, to be held simultaneously with the general election. As a result, a vote is not required on the School District’s general fund tax levy for the budget year, other than the general fund tax levy required to support a proposal for additional funds, if any. Budgets are prepared using the modified accrual basis of accounting. The legal level of budgetary control is established at line item accounts within each fund. Line item accounts are defined as the lowest (most specific) level of detail as established pursuant to the minimum chart of accounts referenced in N.J.A.C. 6A:23A-16.2(f)1. Transfers of appropriations may be made by school board resolution at any time during the fiscal year in accordance with N.J.A.C. 6A:23A-13.3.

Formal budgetary integration into the accounting system is employed as a management control device during the year. For governmental funds there are no substantial differences between the budgetary basis of accounting and generally accepted accounting principles, with the exception of the legally mandated revenue recognition of the one or more June state aid payments for budgetary purposes only,and the special revenue fund. N.J.S.A. 18A:22-44.2 provides that in the event a state school aid payment is not made until the following school budget year, school districts must record the delayed one or more June state aid payments as revenue, for budget purposes only, in the current school budget year. The bill provides legal authority for school districts to recognize this revenue in the current budget year. Encumbrance accounting is also employed as an extension of formal budgetary integration in the governmental fund types. Unencumbered appropriations lapse at fiscal year-end.

The accounting records of the special revenue fund are maintained on the budgetary basis. The budgetary basis differs from GAAP in that the budgetary basis recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. Sufficient supplemental records are maintained to allow for the presentation of GAAP basis financial reports.

The budget, as detailed on exhibit C-1, exhibit C-2, and exhibit I-3 includes all amendments to the adopted budget, if any.

Exhibit C-3 presents a reconciliation of the general fund revenues and special revenue fund revenues and expenditures from the budgetary basis of accounting, as presented in the general fund budgetary comparison schedule and the special revenue fund budgetary comparison schedule, to the GAAP basis of accounting as presented in the statement of revenues, expenditures and changes in fund balances -governmental funds. Note that the School District does not report encumbrances outstanding at fiscal year-end as expenditures in the general fund since the general fund budget follows the modified accrual basis of accounting, with the exception of the aforementioned revenue recognition policy for the one or more June state aid payments.

Encumbrances

Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded to assign a portion of the applicable appropriation, is utilized for budgetary control purposes. Encumbrances are a component of fund balance at fiscal year-end as they do not constitute expenditures or liabilities, but rather commitments related to unperformed contracts for goods and services. Open encumbrances in the governmental funds, other than the special revenue fund, which have not been previously restricted, committed, or assigned, should be included within committed or assigned fund balance, as appropriate.

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Encumbrances (Cont’d)

Open encumbrances in the special revenue fund, however, for which the School District has received advances of grant awards, are reflected on the balance sheet as unearned revenues at fiscal year-end.

The encumbered appropriation authority carries over into the next fiscal year. An entry will be made at the beginning of the next fiscal year to increase the appropriation reflected in the certified budget by the outstanding encumbrance amount as of the current fiscal year end.

Cash, Cash Equivalents and Investments

Cash and cash equivalents, for all funds, include petty cash, change funds, cash in banks and all highly liquid investments with a maturity of three months or less at the time of purchase and are stated at cost plus accrued interest. Such is the definition of cash and cash equivalents used in the statement of cash flows for the proprietary funds. U.S. treasury and agency obligations and certificates of deposit with maturities of one year or less when purchased are stated at cost. All other investments are stated at fair value.

New Jersey school districts are limited as to the types of investments and types of financial institutions they may invest in. N.J.S.A. 18A:20-37 provides a list of permissible investments that may be purchased by New Jersey school districts.

N.J.S.A. 17:9-41 et seq. establishes the requirements for the security of deposits of governmental units. The statute requires that no governmental unit shall deposit public funds in a public depository unless such funds are secured in accordance with the Governmental Unit Deposit Protection Act (“GUDPA”), a multiple financial institutional collateral pool, which was enacted in 1970 to protect governmental units from a loss of funds on deposit with a failed banking institution in New Jersey. Public depositories include State or federally chartered banks, savings banks or associations located in or having a branch office in the State of New Jersey, the deposits of which are federally insured. All public depositories must pledge collateral, having a market value at least equal to five percent of the average daily balance of collected public funds, to secure the deposits of governmental units. If a public depository fails, the collateral it has pledged, plus the collateral of all other public depositories, is available to pay the amount of their deposits to the governmental units.

Inventories

Inventories are valued at cost, which approximates market. The costs are determined on a first-in, first-out method.

The cost of inventories in the governmental fund financial statements is recorded as expenditures when purchased rather than when consumed.

Inventories recorded on the government-wide financial statements and in the proprietary fund types arerecorded as expenses when consumed rather than when purchased.

Tuition Receivable

Tuition charges were established by the School District based on estimated costs. The charges are subject to adjustment when the final costs are determined.

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Prepaid Expenses

Prepaid expenses recorded on the government-wide financial statements and in the proprietary fund types represent payments made to vendors for services that will benefit periods beyond June 30, 2016.

In the governmental fund financial statements, however, payments for prepaid items are fully recognized as expenditures in the fiscal year of payment. No asset for the prepayment is created, and no expenditure allocation to future accounting periods is required (non-allocation method). This is consistent with the basic governmental concept that only expendable financial resources are reported by a specific fund.

Short-Term Interfund Receivables / Payables

Short-term interfund receivables / payables (internal balances) represent amounts that are owed, other than charges for goods or services rendered to / from a particular fund within the School District, and that are due within one year. Such balances are eliminated in the statement of net position to minimize the grossing up of internal balances, thus leaving a net amount due between the governmental and business-type activities that are eliminated in the total government column. Balances with fiduciary activities are not considered to be internal balances; therefore, such balances appear on the statement of net position as accounts receivable.

Capital Assets

Capital assets represent the cumulative amount of capital assets owned by the School District. Purchased capital assets are recorded as expenditures in the governmental fund financial statements and are capitalized at cost on the government-wide statement of net position and proprietary fund statement of net position. In the case of gifts or contributions, such capital assets are recorded at acquisition value at the time received.

The School District’s capitalization threshold is $2,000.00. Other costs incurred for repairs and maintenance is expensed as incurred. All reported capital assets, except land and construction in progress, are depreciated. Depreciation is computed using the straight-line method over the following estimated useful lives:

Description

Governmental Activities

Estimated Lives

Business-Type Activities

Estimated Lives

Land Improvements 20-50 Years N/ABuildings and Improvements 20-40 Years N/AEquipment 8-15 Years 15 Years

The School District does not possess any infrastructure assets.

Deferred Outflows and Deferred Inflows of Resources

The statement of net position reports separate sections for deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources, reported after total assets, represents a reduction of net position that applies to a future period(s) and will be recognized as an outflow of resources (expense) at that time. Deferred inflows of resources, reported after total liabilities, represents an acquisition of net position that applies to a future period(s) and will be recognized as an inflow of resources (revenue) at that time.

41



Deferred Outflows and Deferred Inflows of Resources (Cont’d)

Transactions are classified as deferred outflows of resources and deferred inflows of resources only when specifically prescribed by the Governmental Accounting Standards Board (GASB) standards. The School District is required to report the following as deferred outflows of resources and deferred inflows of resources:

Defined Benefit Pension Plans - The difference between expected (actuarial) and actual experience, changes in actuarial assumptions, net difference between projected (actuarial) and actual earnings on pension plan investments, changes in the School District’s proportion of expenses and liabilities to the pension as a whole, differences between the School District’s pension contribution and its proportionate share of contributions, and the School District’s pension contributions subsequent to the pension valuation measurement date.

In addition, the School District reports the following as deferred outflows of resources:

Loss on Refunding of Debt - The loss on refunding arose from the issuance of refunding bonds, which is amortized in a systematic and rational manner over the duration of the related debt as a component of interest expense.

Tuition Payable

Tuition charges for the fiscal years ended June 30, 2016 and 2015 were based on rates established by the receiving district. These rates are subject to change when the actual costs have been determined.

Unearned Revenue

Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied and is recorded as a liability until the revenue is both measurable and the School District is eligible to realize the revenue.

Accrued Salaries and Wages

Certain School District employees who provide services to the School District over the ten-month academic year have the option to have their salaries evenly disbursed during the entire twelve-month year. New Jersey statutes require that these earned but undisbursed amounts be retained in a separate bank account. As of June 30, 2016, the amounts earned by these employees were disbursed to the employees' own individual credit union accounts.

Compensated Absences

Compensated absences are payments to employees for accumulated time such as paid vacation, paid holidays, sick pay, and sabbatical leave. A liability for compensated absences that is attributable to services already rendered, and that are not contingent on a specific event that is outside the control of the School District and its employees, is accrued as the employees earn the rights to the benefits. Compensated absences that relate to future services, or that are contingent on a specific event that is outside the control of the School District and its employees, are accounted for in the period in which such services are rendered or in which such events take place.

The School District uses the vesting method to calculate the compensated absences amount. The entire compensated absence liability, including the employer’s share of applicable taxes, is reported on the government-wide financial statements. The portion related to employees in the proprietary funds is recorded at the fund level. The current portion is the amount estimated to be used in the following fiscal year. Expenditures are recognized in the governmental funds as payments come due each period, for example, as a result of employee resignations and retirements. Compensated absences not recorded at the fund level represent a reconciling item between the fund level and government-wide presentations.

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Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities, and long-term obligations are reported in the government-wide financial statements, and all payables, accrued liabilities, and long-term obligations payable from proprietary funds are reported on the proprietary fund financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner, and in full from current financial resources, are reported as obligations of the funds. However, claims and judgments, compensated absences, special termination benefits, and contractually required pension contributions that will be paid from governmental funds, are reported as a liability in the fund financial statements only to the extent that they are normally expected to be paid with expendable available financial resources. Bonds are recognized as a liability on the governmental fund financial statements when due.

Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers’ Pension and Annuity Fund (“TPAF”) and the Public Employees' Retirement System (“PERS”), and additions to/deductions from TPAF’s and PERS’s fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Bond Discounts / Premiums

Bond discounts / premiums arising from the issuance of long-term debt (bonds) are amortized over the life of the bonds, in systematic and rational method, as a component of interest expense. Bond discounts / premiums are presented as an adjustment of the face amount of the bonds on the government-wide statement of net position and on the proprietary fund statement of net position.

Net Position

Net position represents the difference between the summation of assets and deferred outflows of resources, and the summation of liabilities and deferred inflows of resources. Net position is classified into the following three components:

Net Investment in Capital Assets - This component represents capital assets, net of accumulated depreciation, net of outstanding balances of borrowings used for the acquisition, construction, or improvement of those assets.

Restricted - Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the School District or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.

Unrestricted - Net position is reported as unrestricted when it does not meet the criteria of the other two components of net position.

The School District applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.

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Fund Balance

The School District reports fund balance in classifications that comprise a hierarchy based primarily on the extent to which the School District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The School District’s classifications, and policies for determining such classifications, are as follows:

Nonspendable - The nonspendable fund balance classification includes amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, such as inventories and prepaid amounts.

Restricted - The restricted fund balance classification includes amounts that are restricted to specific purposes. Such restrictions, or constraints, are placed on the use of resources either by being (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation.

Committed - The committed fund balance classification includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the School District’s highest level of decision-making authority, which, for the School District, is the Board of Education. Such formal action consists of an affirmative vote by the Board of Education, memorialized by the adoption of a resolution. Once committed, amounts cannot be used for any other purpose unless the Board of Education removes, or changes, the specified use by taking the same type of action (resolution) it employed to previously commit those amounts.

Assigned - The assigned fund balance classification includes amounts that are constrained by the School District’s intent to be used for specific purposes, but are neither restricted nor committed. Intent is expressed by either the Board of Education or by the business administrator, to which the Board of Education has delegated the authority to assign amounts to be used for specific purposes. Such authority of the business administrator is established by way of a formal job description for the position and standard operating procedures, approved by the Board of Education.

Unassigned - The unassigned fund balance classification is the residual classification for thegeneral fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance.

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, it is the policy of the School District to spend restricted fund balances first. Moreover, when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications can be used, it is the policy of the School District to spend fund balances, if appropriate, in the following order: committed, assigned, then unassigned.

Interfund Activity

Transfers between governmental and business-type activities on the government-wide statements arereported in the same manner as general revenues. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures / expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources / uses in governmental funds and after non-operating revenues / expenses in proprietary funds. Reimbursements from funds responsible for particular expenditures / expenses to the funds that initially paid for them are not presented on the financial statements.

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Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Impact of Recently Issued Accounting Principles

Recently Issued and Adopted Accounting Pronouncements

For the fiscal year ended June 30, 2016, the School District adopted GASB Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The adoption of this Statement had no impact on the basic financial statements of the School District.

In addition, the School District adopted GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. The adoption of this Statement had no impact on the basic financial statements of the School District.

Lastly, the School District adopted GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The objective of this Statement is to identify, in the context of the current governmental financial reporting environment, the hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy” consists of the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity with GAAP and the framework for selecting those principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. The adoption of this Statement had no impact on the basic financial statements of the School District.

Recently Issued Accounting Pronouncements

The GASB has issued the following Statements during the fiscal year ended June 30, 2016 which will become effective in future fiscal years as shown below:

Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. The Statement will become effective for the School District in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the School District.

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Impact of Recently Issued Accounting Principles (Cont’d)

Recently Issued Accounting Pronouncements (Cont’d)

Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. The Statement will become effective for the School District in fiscal year 2018. Management has not yet determined the impact of this Statement on the basic financial statements of the School District.

Statement No. 77, Tax Abatement Disclosures. This Statement requires governments that enter into tax abatement agreements to disclose certain information about the agreements. The Statement will become effective for the School District in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the School District.

Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement is to address a practice issue regarding the scope and applicability of Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions provided through certain multiple-employer defined benefit pension plans and to state or local governmental employers whose employees are provided with such pensions. The Statement will become effective for the School District in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the School District.

Statement No. 79, Certain External Investment Pools and Pool Participants. This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. The Statement will become effective for the School District in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the School District.

Statement No. 80, Blending Requirements for Certain Component Units an amendment of GASB Statement No. 14. This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. The Statement will become effective for the School District in fiscal year 2017. Management does not expect this Statement will have an impact on the basic financial statements of the School District.

Statement No. 81, Irrevocable Split-Interest Agreements. The objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. The Statement will become effective for the School District in fiscal year 2018. Management does not expect this Statement will have an impact on the basic financial statements of the School District.

Statement No. 82, Pension Issues and amendment of GASB Statements No. 67, No. 68, and No. 73. This Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The Statement will become effective for the School District in fiscal year 2017. Management does not expect this Statement will have a material impact on the basic financial statements of the School District.

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Note 2: CASH AND CASH EQUIVALENTS

Custodial Credit Risk Related to Deposits - Custodial credit risk is the risk that, in the event of a bank failure, the School District’s deposits might not be recovered. Although the School District does not have a formal policy regarding custodial credit risk, N.J.S.A. 17:9-41 et seq. requires that governmental unitsshall deposit public funds in public depositories protected from loss under the provisions of the Governmental Unit Deposit Protection Act (GUDPA). Under the Act, the first $250,000.00 of governmental deposits in each insured depository is protected by the Federal Deposit Insurance Corporation (FDIC). Public funds owned by the School District in excess of FDIC insured amounts are protected by GUDPA. However, GUDPA does not protect intermingled agency funds such as salary withholdings, and student activity funds, or funds that may pass to the School District relative to the happening of a future condition. Such funds are classified as uninsured and uncollateralized.

As of June 30, 2016, the School District’s bank balances of $29,518,584.81 were exposed to custodial credit risk as follows:

Insured by FDIC and GUDPA 28,885,870.38$

Uninsured and Uncollateralized 632,714.43

29,518,584.81$

Note 3: CAPITAL RESERVE ACCOUNT

A capital reserve account was established by the School District by inclusion of $1,000,000.00 on June 27, 2012 for the accumulation of funds for use as capital outlay expenditures in subsequent fiscal years. The capital reserve account is maintained in the general fund and its activity is included in the general fund annual budget.

Funds placed in the capital reserve account are restricted to capital projects in the School District’s approved Long Range Facilities Plan (“LRFP”). Upon submission of the LRFP to the Department, a school district may increase the balance in the capital reserve by appropriating funds in the annual general fund budget certified for taxes or by transfer by board resolution at fiscal year-end (June 1 to June 30) of any unanticipated revenue or unexpended line-item appropriation amounts, or both. A school district may also appropriate additional amounts when the express approval of the voters has been obtained by either a separate proposal at budget time or by a special question at one of the four special elections authorized pursuant to N.J.S.A. 19:60-2. Pursuant to N.J.A.C. 6A:23A-14.1(g), the balance in the account cannot at any time exceed the local support costs of uncompleted capital projects in its approved LRFP.

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Note 3: CAPITAL RESERVE ACCOUNT (CONT’D)

The activity of the capital reserve for the July 1, 2015 to June 30, 2016 fiscal year is as follows:

Beginning Balance July 1, 2015 16,046,698.12$

Increased by:

Interest Earnings 11,561.22$

Deposits:

Board Resolution June 22, 2016 6,000,000.00

6,011,561.22

22,058,259.34

Decreased by:

Withdrawals:

Budgeted Withdrawls 10,140,000.00

Board Resolution August 12, 2015 18,500.00

10,158,500.00

Ending Balance June 30, 2016 11,899,759.34$

The June 30, 2016 LRFP balance of local support costs of uncompleted projects at June 30, 2016 is $56,710,205.00. The withdrawals from the capital reserve were for use in a Department of Education approved facilities projects, consistent with the School District’s LRFP.

Note 4: MAINTENANCE RESERVE

A maintenance reserve account was established by the School District by inclusion of $1,000,000.00 on June 27, 2012 for the accumulation of funds for use as required maintenance of school facilities expenditures in subsequent fiscal years. The maintenance reserve account is maintained in the general fund and its activity is included in the general fund annual budget.

Funds placed in the maintenance reserve account are restricted to required maintenance of school facilities in the School District’s in accordance with the comprehensive maintenance plan pursuant to N.J.A.C.6A:26A-4. A school district may increase the balance in the maintenance reserve by appropriating funds in the annual general fund budget certified for taxes or by transfer by board resolution at fiscal year-end (June 1 to June 30) of any unanticipated revenue or unexpended line-item appropriation amounts, or both.

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Note 4: MAINTENANCE RESERVE (CONT’D)

The activity of the maintenance reserve for the July 1, 2015 to June 30, 2016 fiscal year is as follows:

Beginning Balance July 1, 2015 1,501,357.06$

Increased by:

Interest Earnings 2,598.74$

Deposits:

Board Resolution June 22, 2016 500,000.00

502,598.74

Ending Balance June 30, 2016 2,003,955.80$

Note 5: ACCOUNTS RECEIVABLE

Accounts receivable at June 30, 2016 consisted of accounts (fees for services), intergovernmental awards / grants. All receivables are considered collectible in full due to the stable condition of federal and state programs, the current fiscal year guarantee of federal funds, and the regulated budgetary control of governmental entities in New Jersey.

Accounts receivable as of fiscal year end for the School District’s individual major and fiduciary funds, in the aggregate, are as follows:

Special Capital Total Total

General Revenue Projects Governmental Food Before- After Proprietary

Description Fund Fund Fund Activities Service School Program Funds Total

Federal Awards 152,437.68$ 821,256.80$ 973,694.48$ 114,773.92$ 114,773.92$ 1,088,468.40$

State Awards 503,856.60 5,037.00 1,508,848.78$ 2,017,742.38 3,707.47 3,707.47 2,021,449.85

Local Tax Levy 2,632,470.00 2,632,470.00 - 2,632,470.00

Tuition Charges 1,082,044.01 1,082,044.01 - 1,082,044.01

Provided Services - 31,358.52 74,288.10$ 105,646.62 105,646.62

Interfunds 89,951.13 89,951.13 6,029.60 6,029.60 95,980.73

Other 140,249.56 3,360.00 143,609.56 - 143,609.56

Total 4,601,008.98$ 829,653.80$ 1,508,848.78$ 6,939,511.56$ 155,869.51$ 74,288.10$ 230,157.61$ 7,169,669.17$

Governmental Funds Proprietary Funds

Note 6: INVENTORY

Inventory recorded at June 30, 2016 in business-type activities on the government-wide statement of net position, and on the food service enterprise fund statement of net position, consisted of the following:

Food 43,608.66$

Supplies 17,148.62

Commodities 31,909.63

Total 92,666.91$

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Note 7: CAPITAL ASSETS

Capital asset activity for the fiscal year ended June 30, 2016 is as follows:

Balance Adjustments/ Balance

June 30, 2015 Increases Transfer Decreases June 30, 2016


Capital Assets, not being Depreciated:

Land 3,053,818.00$ 3,053,818.00$

Construction in Progress 1,019,282.00 6,422,682.00$ (143,010.00)$ 7,298,954.00

Total Capital Assets not being

Depreciated 4,073,100.00 6,422,682.00 (143,010.00) - 10,352,772.00

Capital Assets, being Depreciated:

Land Improvements 1,994,979.00 (18,390.00)$ 1,976,589.00

Building and Improvements 107,708,078.00 138,360.00 (305,970.00) 107,540,468.00

Equipment 13,702,224.00 1,471,975.00 4,650.00 (94,460.00) 15,084,389.00

Total Capital Assets, being

Depreciated: 123,405,281.00 1,471,975.00 143,010.00 (418,820.00) 124,601,446.00

Less Accumulated Depreciation:

Land Improvements (1,764,586.00) (18,657.00) 18,390.00 (1,764,853.00)

Building and Improvements (41,543,622.00) (2,419,015.00) 140,810.00 (43,821,827.00)

Equipment (8,176,414.00) (1,258,057.00) 95,145.00 (9,339,326.00)

Total Accumulated Depreciation (51,484,622.00) (3,695,729.00) - 254,345.00 (54,926,006.00)

Total Capital Assets, being

Depreciated, Net 71,920,659.00 (2,223,754.00) 143,010.00 (164,475.00) 69,675,440.00


Capital Assets, Net 75,993,759.00$ 4,198,928.00$ -$ (164,475.00)$ 80,028,212.00$


Equipment 1,006,594.38$ 7,600.00$ (41,308.00)$ 972,886.38$

Less Accumulated Depreciation (886,486.00) (23,478.00) 41,308.00 (868,656.00)

Business-Type Activities Capital

Assets, Net 120,108.38$ (15,878.00)$ -$ -$ 104,230.38$

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Note 7: CAPITAL ASSETS (CONT’D)

Depreciation expense was charged to functions / programs of the School District as follows:

Governmemtal Activities:

Regular Instruction 163,524.00$

Support Services:

Student & Instruction Related Services 15,110.00

General Administration 3,478.00

School Administration 299.00

Central Services 504.00

Administration Information Technology 151,754.00

Plant Operations and Maintenance 2,163,283.00

Pupil Transportation 629,476.00

Other 15,056.00

Building 553,245.00

Total Depreciation Expense - Governmental Activities 3,695,729.00$


Food Service 23,478.00$

Note 8: LONG-TERM LIABILITIES

During the fiscal year ended June 30, 2016, the following changes occurred in long-term obligations for governmental activities:

Balance Balance Due Within

July 1, 2015 Additions Reductions June 30, 2016 One Year


Bonds Payable:

General Obligation Bonds 13,080,000.00$ (2,670,000.00)$ 10,410,000.00$ 2,600,000.00$

Add Amounts:

Premium on Bonds 747,239.51 (153,279.90) 593,959.61

Less Amounts:

Bond Discounts (4,633.16) 926.63 (3,706.53)

Total Bonds Payable 13,822,606.35 - (2,822,353.27) 11,000,253.08 2,600,000.00

Other Liabilities:

Net Pension Liability 12,438,936.00 3,712,565.00$ (2,063,783.00) 14,087,718.00

Compensated Absences 2,249,006.06 198,403.23 2,447,409.29 257,712.20

Total Other Liabilities 14,687,942.06 3,910,968.23 (2,063,783.00) 16,535,127.29 257,712.20

Governmental Activity Long-Term Liabilities 28,510,548.41$ 3,910,968.23$ (4,886,136.27)$ 27,535,380.37$ 2,857,712.20$

The bonds payable is generally liquidated by the debt service fund, while compensated absences and net pension liability is liquidated by the general fund.

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Note 8: LONG-TERM LIABILITIES (CONT’D)

Bonds Payable - Bonds and loans are authorized in accordance with State law by the voters of the municipality through referendums. All bonds are retired in serial installments within the statutory period of usefulness. Bonds issued by the School District are general obligation bonds.

The School District has three bonds that are outstanding as of June 30, 2016.

On March 6, 2003, the School District issued $2,210,000.00 School Refunding Bonds at interest rates varying from 2.00% to 5.37% in order to fund the present value of the Pension Liabilities. The final maturity of these bonds is July 1, 2020. The bonds will be paid from property taxes and debt service state aid.

On June 18, 2008, the School District issued $3,300,000.00 School Bonds at interest rates varying from 3.75% to 4.00% for projects and improvements at the schools. The final maturity on these bonds is January 15, 2019. The bonds will be paid from property taxes and debt service state aid.

On May 16, 2013, the School District issued $13,230,000.00 School Refunding Bonds at interest rates varying from 2.00% to 4.00% for the current refunding of the 2004 School Refunding Bonds. The final maturity of these bonds is August 1, 2019. The bonds will be paid from property taxes and debt service state aid.

Principal and interest due on bonds outstanding is as follows:

Fiscal Year

Ended June 30, Principal Interest Total

2017 2,600,000.00$ 343,125.00$ 2,943,125.00$

2018 2,655,000.00 259,390.63 2,914,390.63

2019 2,720,000.00 162,412.51 2,882,412.51

2020 2,355,000.00 51,915.63 2,406,915.63

2021 80,000.00 2,150.00 82,150.00

10,410,000.00$ 818,993.77$ 11,228,993.77$

Bonds Authorized but not Issued - As of June 30, 2016, the School District had no authorizations to issue additional bonded debt.

Compensated Absences - As previously stated, compensated absences will be paid from the fund from which the employees’ salaries are paid. Refer to note 15 for a description of the School District’s policy.

Net Pension Liability - For details on the net pension liability, refer to note 10. The School District’s annual required contribution to the Public Employees' Retirement System are budgeted and paid from the general fund on an annual basis.

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Note 9: OPERATING LEASES

At June 30, 2016, the School District had operating lease agreements in effect for copy machines, mail machines, and temporary classroom modular. The present value of the future minimum rental payments under the operating lease agreements are as follows:

Fiscal Year

Ended June 30, Amount

2017 288,147.36$

2018 239,217.36

2019 237,832.11

2020 227,173.08

2021 130,924.50

1,123,294.41$

Rental payments under operating leases for the fiscal year ended June 30, 2016 were $307,546.48.

Note 10:PENSION PLANS

A substantial number of the School District's employees participate in one of the following defined benefit pension plans: the Teachers' Pension and Annuity Fund (“TPAF”) and the Public Employees' Retirement System (“PERS”), which are administered by the New Jersey Division of Pensions and Benefits (the “Division”). In addition, several School District employees participate in the Defined Contribution Retirement Program, which is a defined contribution pension plan. This plan is administered by Prudential Financial for the Division. Each plan has a Board of Trustees that is primarily responsible for its administration. The Division issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to:

State of New JerseyDivision of Pensions and Benefits

P.O. Box 295Trenton, New Jersey 08625-0295

http://www.nj.gov/treasury/pensions

General Information about the Pension Plans

Plan Descriptions

Teachers' Pension and Annuity Fund - The Teachers' Pension and Annuity Fund is a cost-sharing multiple-employer defined benefit pension plan, with a special funding situation, which was established as of January 1, 1955, under the provisions of N.J.S.A. 18A:66. The State of New Jersey (the “State”) is responsible to fund 100% of the employer contributions, excluding any localemployer early retirement incentive (ERI) contributions. The TPAF’s designated purpose is to provide retirement benefits, death, disability and medical benefits to certain qualified members. Membership in the TPAF is mandatory for substantially all teachers or members of the professional staff certified by the State Board of Examiners, who have titles that are unclassified, professional and certified. The TPAF’s Board of Trustees is primarily responsible for the administration of the TPAF.

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Note 10:PENSION PLANS (CONT’D)

General Information about the Pension Plans (Cont’d)

Plan Descriptions (Cont’d)

Public Employees' Retirement System - The Public Employees' Retirement System is a cost-sharing multiple-employer defined benefit pension plan which was established as of January 1, 1955, under the provisions of N.J.S.A. 43:15A. The PERS’s designated purpose is to provide retirement, death, disability and medical benefits to certain qualified members. Membership in the PERS is mandatory for substantially all full-time employees of the School District, provided the employee is not required to be a member of another state-administered retirement system or other state pensions fund or local jurisdiction’s pension fund. The PERS’s Board of Trustees is primarily responsible for the administration of the PERS.

Defined Contribution Retirement Program - The Defined Contribution Retirement Program is a multiple-employer defined contribution pension fund established on July 1, 2007 under the provisions of Chapter 92, P.L. 2007, and Chapter 103, P.L. 2007 (N.J.S.A. 43:15C-1 et. seq.). The DCRP is a tax-qualified defined contribution money purchase pension plan under Internal Revenue Code (IRC) § 401(a) et seq., and is a “governmental plan” within the meaning of IRC § 414(d). The DCRP provides retirement benefits for eligible employees and their beneficiaries. Individuals covered under DCRP are employees enrolled in TPAF or PERS on or after July 1, 2007, who earn salary in excess of established “maximum compensation” limits; employees enrolled in SPRS or PFRS after May 21, 2010, who earn salary in excess of established “maximum compensation” limits; employees otherwise eligible to enroll in TPAF or PERS on or after November 2, 2008, who do not earn the minimum annual salary for tier 3 enrollment but who earn salary of at least $5,000.00 annually; and employees otherwise eligible to enroll in TPAF or PERS after May 21, 2010 who do not work the minimum number of hours per week required for tiers 4 or 5 enrollment, but who earn salary of at least $5,000.00 annually.

Vesting and Benefit Provisions

Teachers' Pension and Annuity Fund - The vesting and benefit provisions are set by N.J.S.A. 18A:66. TPAF provides retirement, death and disability benefits. All benefits vest after ten years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of TPAF. Members are always fully vested for their own contributions and, after three years of service credit, become vested for 2% of related interest earned on the contributions. In the case of death before retirement, members' beneficiaries are entitled to full interest credited to the members' accounts.

The following represents the membership tiers for TPAF:

Tier Definition

1 Members who were enrolled prior to July 1, 20072 Members who were eligible to enroll on or after July 1, 2007 and prior to November 2, 20083 Members who were eligible to enroll on or after November 2, 2008 and prior to May 21, 20104 Members who were eligible to enroll after May 21, 2010 and prior to June 28, 20115 Members who were eligible to enroll on or after June 28, 2011

Service retirement benefits of 1/55th

of final average salary for each year of service credit is available to tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60

thof final average salary for each year of service credit is available

to tier 4 members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 before age 62with 25 or more years of service credit, and tier 5 before age 65 with 30 or more years of service credit. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the retirement age for his/her respective tier.

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Note 10:PENSION PLANS (CONT’D)

General Information about the Pension Plans (Cont’d)

Vesting and Benefit Provisions (Cont’d)

Teachers' Pension and Annuity Fund (Cont’d) - Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.

Public Employees’ Retirement System - The vesting and benefit provisions are set by N.J.S.A. 43:15A and 43:3B. The PERS provides retirement, death and disability benefits. All benefits vest after 10 years of service, except for medical benefits, which vest after 25 years of service or under the disability provisions of the PERS.

The membership tiers for PERS are the same as previously noted for TPAF.

Service retirement benefits of 1/55th

of final average salary for each year of service credit is available to tiers 1 and 2 members upon reaching age 60 and to tier 3 members upon reaching age 62. Service retirement benefits of 1/60

thof final average salary for each year of service credit is available

to tier 4 members upon reaching age 62 and tier 5 members upon reaching age 65. Early retirement benefits are available to tiers 1 and 2 members before reaching age 60, tiers 3 and 4 before age 62 with 25 or more years of service credit and tier 5 with 30 or more years of service credit before age 65. Benefits are reduced by a fraction of a percent for each month that a member retires prior to the age at which a member can receive full early retirement benefits in accordance with their respective tier. Tier 1 members can receive an unreduced benefit from age 55 to age 60 if they have at least 25 years of service. Deferred retirement is available to members who have at least 10 years of service credit and have not reached the service retirement age for the respective tier.

Defined Contribution Retirement Program - Eligible members are provided with a defined contribution retirement plan intended to qualify for favorable Federal income tax treatment under IRC Section 401(a), a noncontributory group life insurance plan and a noncontributory group disability benefit plan. A participant's interest in that portion of his or her defined contribution retirement plan account attributable to employee contributions shall immediately become and shall at all times remain fully vested and nonforfeitable. A participant's interest in that portion of his or her defined contribution retirement plan account attributable to employer contributions shall be vested and nonforfeitable on the date the participant commences the second year of employment or upon his or her attainment of age 65, while employed by an employer, whichever occurs first.

Contributions

Teachers' Pension and Annuity Fund - The contribution policy is set by N.J.S.A. 18A:66 and requires contributions by active members and contributing employers. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years beginning in July 2012. The member contribution rate was 7.06% in State fiscal year 2016. The phase-in of the additional incremental member contribution rate takes place in July of each subsequent State fiscal year. The State’s pension contribution is based on an actuarially determined amount which includes the employer portion of the normal cost and an amortization of the unfunded accrued liability. Funding for noncontributory group insurance benefits is based on actual claims paid. For fiscal year 2015,the State’s pension contribution was less that the actuarial determined amount.

Under current statute, all employer contributions are made by the State of New Jersey on-behalf of the School District and all other related non-contributing employers. No normal or accrued liability contribution by the School District has been required over several preceding fiscal years. These on-behalf contributions by the State of New Jersey are considered a special funding situation, under the definition of GASB 68, Accounting and Financial Reporting for Pensions.

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Note 10: PENSION PLANS (CONT’D)

General Information About the Pension Plans (Cont’d)

Contributions (Cont’d)

Teachers' Pension and Annuity Fund (Cont’d) - The School District’s contractually required contribution rate for the fiscal year ended June 30, 2016 was 4.97% of the School District’s covered payroll, of which 0.00% of payroll was required from the School District and 100.00% of payroll was required from the State of New Jersey. The School District was not required to make any contributions to the pension plan during the fiscal year ended June 30, 2016 because of the 100.00% special funding situation with the State of New Jersey.

Based on the most recent TPAF measurement date of June 30, 2015, the State’s contractually required contribution, on-behalf of the School District, to the pension plan for the fiscal year ended June 30, 2016 was $1,987,987.00, and was paid by April 1, 2016. School District employee contributions to the pension plan during the fiscal year ended June 30, 2016 were $2,894,988.86.

Public Employees’ Retirement System - The contribution policy is set by N.J.S.A. 43:15A and requires contributions by active members and contributing employers. Members contribute at a uniform rate. Pursuant to the provisions of Chapter 78, P.L. 2011, the active member contribution rate increased from 5.5% of annual compensation to 6.5% plus an additional 1% phased-in over 7 years beginning in July 2012. The member contribution rate was 7.06% in State fiscal year 2016. The phase-in of the additional incremental member contribution rate takes place in July of each subsequent State fiscal year. The rate for members who are eligible for the Prosecutors Part of PERS (Chapter 366, P.L. 2001) increased from 8.5% of base salary to 10%. Employers' contribution amounts are based on an actuarially determined rate. The School District’s contribution amounts are based on an actuarially determined rate which included the normal cost and unfunded accrued liability.

The School District’s contractually required contribution rate for the fiscal year ended June 30, 2016was 13.21% of the School District’s covered payroll. This amount was actuarially determined as the amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year, including an additional amount to finance any unfunded accrued liability.

Based on the most recent PERS measurement date of June 30, 2015, the School District’scontractually required contribution to the pension plan for the fiscal year ended June 30, 2016 was$539,543.00, and was paid by April 1, 2016. School District employee contributions to the pension plan during the fiscal year ended June 30, 2016 were $337,631.86.

Defined Contribution Retirement Program - The contribution policy is set by N.J.S.A. 43:15C-3 and requires contributions by active members and contributing employers. In accordance with Chapter 92, P.L. 2007 and Chapter 103, P.L. 2007, plan members are required to contribute 5.5% of their annual covered salary. In addition to the employee contributions, the School Districtcontributes 3% of the employees' base salary, for each pay period, to Prudential Financial not later than the fifth business day after the date on which the employee is paid for that pay period.

For the fiscal year ended June 30, 2016, employee contributions totaled $9,632.05, and the School District recognized pension expense of $5,253.80. There were no forfeitures during the fiscal year.

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Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions

Teachers' Pension and Annuity Fund - At June 30, 2016, the School District was not required to report a liability for its proportionate share of the net pension liability because of a 100% special funding situation by the State of New Jersey.

The State’s proportionate share of net pension liability, attributable to the School District is as follows:

School District's Proportionate Share of Net Pension Liability -$

State of New Jersey's Proportionate Share of Net Pension

Liability Associated with the School District 233,797,882.00

233,797,882.00$

The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2015. For the June 30, 2015 measurement date, the School District’s proportion of the net pension liability was based on a projection of the School District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers and the State of New Jersey, actuarially determined. At June 30, 2015, the School District proportion was 0.00% due to the 100% special funding situation with the State of New Jersey. For the June 30, 2015 measurement date, the State’s proportionate share of the TPAF net pension liability associated with the School District was .3699083629%, which was an increase of .0076352731% from its proportion measured as of June 30, 2014.

For the fiscal year ended June 30, 2016, the School District recognized $14,275,466.00 in pension expense and revenue, in the government-wide financial statements, for the State of New Jersey on-behalf TPAF pension contributions. This pension expense and revenue was based on the pension plans June 30, 2015 measurement date.

Public Employees’ Retirement System - At June 30, 2016, the School District reported a liability of $14,087,718.00 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2015. The School District’s proportion of the net pension liability was based on a projection of the School District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. For the June 30, 2015 measurement date, the School District’s proportion was .0627571293%, which was a decrease of .0036804717% from its proportion measured as of June 30, 2014.

For the fiscal year ended June 30, 2016, the School District recognized pension expense of $859,478.00, in the government-wide financial statements. This pension expense was based on the pension plans June 30, 2015 measurement date.

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Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Cont’d)

Public Employees’ Retirement System (Cont’d) - At June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to PERS from the following sources:

Deferred

Outflows Inflows

of Resources of Resources

Differences between Expected

and Actual Experience 336,083.00$ -$

Changes of Assumptions 1,512,908.00 -

Net Difference between Projected

and Actual Earnings on Pension

Plan Investments - 226,503.00

Changes in Proportion and Differences

between School District Contributions

and Proportionate Share of Contributions 262,781.00 584,622.00

School District Contributions Subsequent

to the Measurement Date 615,470.00 -

2,727,242.00$ 811,125.00$

Deferred

$615,470.00 included in deferred outflows of resources, will be included as a reduction of the net pension liability in the fiscal year ending June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ending

June 30,

2017 232,116.00$

2018 232,116.00

2019 232,115.00

2020 417,438.00

2021 186,862.00

1,300,647.00$

58



Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (Cont’d)

Public Employees’ Retirement System (Cont’d) – The amortization of the above other deferred outflows of resources and deferred inflows of resources related to pensions will be over the following number of years:

Deferred Deferred

Outflows Inflows

of Resources of Resources

Differences between Expected

and Actual Experience

Year of Pension Plan Deferral:

June 30, 2014 - -

June 30, 2015 5.72 -

Changes of Assumptions


June 30, 2014 6.44 -

June 30, 2015 5.72 -

Net Difference between Projected

and Actual Earnings on Pension

Plan Investments


June 30, 2014 - 5.00

June 30, 2015 - 5.00

Changes in Proportion and Differences

between School District Contributions

and Proportionate Share of Contributions


June 30, 2014 6.44 6.44

June 30, 2015 5.72 5.72

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Actuarial Assumptions

The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2014. The total pension liability was calculated through the use of updated procedures to roll forward from the actuarial valuation date to the measurement date of June 30, 2015. This actuarial valuation used the following actuarial assumptions, applied to all periods included in the measurement:

TPAF PERS

Inflation 2.50% 3.04%

Salary Increases:

2012-2021 Varies Based on Experience 2.15% - 4.40% Based on Age

Thereafter Varies Based on Experience 3.15% - 5.40% Based on Age

Investment Rate of Return 7.90% 7.90%

Mortality Rate Table RP-2000 RP-2000

Period of Actuarial Experience

Study upon which Actuarial

Assumptions were Based July 1, 2009 - June 30, 2012 July 1, 2008 - June 30, 2011

For TPAF, mortality rates were based on the RP-2000 Health Annuitant Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements were based on Scale AA. Pre-retirement mortality improvements for active members are projected using Scale AA from the base year of 2000 until the valuation date plus 15 years to account for future mortality improvement. Post-retirement mortality improvements for non-disabled annuitants are projected using Scale AA from the base year of 2000 for males and 2003 for females until the valuation date plus 7 years to account for future mortality improvement.

For PERS, mortality rates were based on the RP-2000 Combined Healthy Male and Female Mortality Tables (setback 1 year for males and females) for service retirement and beneficiaries of former members with adjustments for mortality improvements from the base year of 2012 based on Projection Scale AA. The RP-2000 Disabled Mortality Tables (setback 3 years for males and setback 1 year for females) are used to value disabled retirees.

For TPAF and PERS, in accordance with State statute, the long-term expected rate of return on plan investments (7.90% at June 30, 2015) is determined by the State Treasurer, after consultation with the Directors of the Division of Investments and Division of Pensions and Benefits, the board of trustees and the actuaries. The long-term expected rate of return was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in TPAF’s and PERS’s target asset allocation as of June 30, 2015 are summarized in the following tables:

60



Actuarial Assumptions (Cont’d)

Long-Term Long-TermTarget Expected Real Target Expected Real

Asset Class Allocation Rate of Return Asset Class Allocation Rate of Return

US Cash 5.00% 0.53% Cash 5.00% 1.04%US Government Bonds 1.75% 1.39% U.S. Treasuries 1.75% 1.64%US Credit Bonds 13.50% 2.72% Investment Grade Credit 10.00% 1.79%US Mortgages 2.10% 2.54% Mortgages 2.10% 1.62%

US Inflation-Indexed Bonds 1.50% 1.47% High Yield Bonds 2.00% 4.03%US High Yield Bonds 2.00% 4.57% Inflation-Indexed Bonds 1.50% 3.25%US Equity Market 27.25% 5.63% Broad U.S. Equities 27.25% 8.52%Foreign-Developed Equity 12.00% 6.22% Developed Foreign Equities 12.00% 6.88%Emerging Markets Equity 6.40% 8.46% Emerging Market Equities 6.40% 10.00%

Private Real Estate Property 4.25% 3.97% Private Equity 9.25% 12.41%Timber 1.00% 4.09% Hedge Funds/Absolute Return 12.00% 4.72%Farmland 1.00% 4.61% Real Estate (Property) 2.00% 6.83%

Private Equity 9.25% 9.15% Commodities 1.00% 5.32%Commodities 1.00% 3.58% Global Debt ex U.S. 3.50% -0.40%

Hedge Funds - MultiStrategy 4.00% 4.59% REIT 4.25% 5.12%Hedge Funds - Equity Hedge 4.00% 5.68%Hedge Funds - Distressed 4.00% 4.30% 100.00%

100.00%

PERSTPAF

Discount Rate - The discount rates used to measure the total pension liability were 4.13% and 4.68% for TPAF as of June 30, 2015 and 2014, respectively, and 4.90% and 5.39% for PERS as of June 30, 2015 and 2014, respectively. For TPAF and PERS, the respective single blended discount rates were based on the long-term expected rate of return on pension plan investments of 7.90%, and a municipal bond rate of 3.80% as of June 30, 2015, based on the Bond Buyer Go 20-Bond Municipal Bond Index which includes tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher. The projection of cash flows used to determine the discount rates for TPAF and PERS assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made based on the average of the last five years actuarially determined contributions. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make projected future benefit payments of current plan members through 2027 for TPAF and 2033 for PERS. Therefore, the long-term expected rate of return on plan investments was applied to projected benefit payments through 2027 for TPAF and 2033 for PERS, and the municipal bond rate was applied to projected benefit payments after that date in determining the total pension liability.

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Sensitivity of School District’s Proportionate Share of Net Pension Liability to Changes in the Discount Rate

Teachers’ Pension and Annuity Fund (TPAF) - As previously mentioned, TPAF, has a special funding situation where the State pays 100% of the School District’s annual required contribution. As such, the proportionate share of the net pension liability as of June 30, 2015, the pension plans measurement date, attributable to the School District is $0, and the State of New Jersey’s proportionate share of thenet pension liability, attributable to the School District, using a discount rate of 4.13%, as well as using a discount rate that is 1% lower or 1% higher than the current rates used is as follows:

1% Current 1%

Decrease Discount Rate Increase

(3.13%) (4.13%) (5.13%)

School District's Proportionate Share

of the Net Pension Liability -$ -$ -$

State of New Jersey's Proportionate

Share of Net Pension Liability

associated with the School District 277,860,044.00 233,797,882.00 195,835,693.00

277,860,044.00$ 233,797,882.00$ 195,835,693.00$

TPAF

Public Employees' Retirement System (PERS) - The following presents the School District’s proportionate share of the net pension liability at June 30, 2015, the plans measurement date, calculated using a discount rate of 4.90%, as well as what the School District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current rates used:

1% Current 1%

Decrease Discount Rate Increase

(3.90%) (4.90%) (5.90%)

School District's Proportionate Share

of the Net Pension Liability 17,509,310.00$ 14,087,718.00$ 11,219,080.00$

PERS

Pension Plan Fiduciary Net Position

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the respective fiduciary net position of the TPAF and PERS and additions to/deductions from TPAF and PERS’ respective fiduciary net position have been determined on the same basis as they are reported by TPAF and PERS. Accordingly, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. For additional information about TPAF and PERS, please refer to the plan’s Comprehensive Annual Financial Report (CAFR) which can be found at www.nj.gov/treasury/pensions/annrpts.shtml.

62


Note 11:STATE POST-RETIREMENT MEDICAL BENEFITS

P.L. 1987, c.384 of P.L. 1990, c.6 required Teachers’ Pensions and Annuity Fund (“TPAF”) and the Public Employees’ Retirement System (“PERS”), respectively, to fund post-retirement medical benefits for those State employees who retire after accumulating 25 years of credited service or on a disability retirement. P.L. 2007, c.103 amended the law to eliminate the funding of postemployment medical benefits through the TPAF and PERS. It created separate funds outside of the pension plans for the funding and payment of postemployment medical benefits for retired State employees and retired educational employees. As of June 30, 2015, there were 107,314 retirees receiving postemploymentmedical benefits, and the State contributed $1.25 billion on their behalf. The cost of these benefits is funded through contributions by the State in accordance with P.L. 1994, c.62. Funding of post-retirement medical premiums changed from a pre-funding basis to a pay-as-you-go basis beginning in fiscal year 1994.

The State is also responsible for the cost attributable to P.L. 1992 c.126, which provides free health benefits to members of PERS and the Alternate Benefit Program who retire from a board of education or county college with 25 years of service. The State paid $214.1 million toward Chapter 126 benefits for 19,056 eligible retired members in fiscal year 2015.

Note 12:ON-BEHALF PAYMENTS

For the fiscal year ended June 30, 2016, the School District has recognized as revenues and expenditures on-behalf payments made by the State for normal costs and post-retirement medical costs related to TPAF, in the fund financial statements. The amounts recognized as revenues and expenditures in the fund financial statements for normal costs, post-retirement medical costs and non-contributory insurance were $2,817,840.00, $3,522,407.00 and $140,367.00, respectively.

Note 13:RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.

Property and Liability Insurance - The School District maintains commercial insurance coverage forworkers compensation supplement, student accident, and surety bonds. A complete schedule of insurance coverage can be found in the statistical section of this Comprehensive Annual Financial Report.

Joint Insurance Fund - The School District is a member of the New Jersey Schools Insurance Group Joint Insurance Fund. The Fund provides its members with the following coverage:

Workers' Compensation and Employer's LiabilityLiability other than Motor Vehicles

Property Damage other than Motor VehiclesMotor Vehicles

Contributions to the Fund, including a reserve for contingencies, are payable in two installments and are based on actuarial assumptions determined by the Fund's actuary. The Commissioner of Insurance may order additional assessments to supplement the Fund's claim, loss retention, or administrative accounts to assure the payment of the Fund's obligations.

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Note 13:RISK MANAGEMENT (CONT’D)

Joint Insurance Fund (Cont’d) - A complete schedule of insurance coverage can be found in the statistical section of this Comprehensive Annual Financial Report. The Fund provides the School District with the following coverage:

Property (Including Crime and Auto Physical Damage)General Liability

Automobile LiabilityWorkers' Compensation

School Board Legal LiabilityBoiler and Machinery

Pollution/Environmental Legal Liability

Contributions to the Fund, are payable in an annual premium and is based on actuarial assumptions determined by the Fund's actuary. The School District’s agreement with the Fund provides that the Fund will be self-sustaining through member premiums.

The Fund publishes its own financial report for the fiscal year ended June 30, 2016, which can be obtained from:

New Jersey Schools Insurance Group450 Veterans Drive

Burlington, New Jersey 08016

Note 14:DEFERRED COMPENSATION

The School District offers its employees a choice of various deferred compensation plans created in accordance with Internal Revenue Code Sections 403(b) and 457. The plans, which are administered by the entities listed below, permit participants to defer a portion of their salary until future years. Amounts deferred under the plans are not available to employees until termination, retirement, death, or unforeseeable emergency. The plan administrators are as follows:

American Express/IDS H.C. CopelandLincoln Investment EquitableFranklin Templeton Citi-Street/MetlifeVanguard Fidelity IvestmentsPrimerica Midland National

Note 15:COMPENSATED ABSENCES

The School District accounts for compensated absences (e.g., unused vacation, sick leave) as directed by Governmental Accounting Standards Board Statement No. 16 (GASB 16), Accounting for Compensated Absences. A liability for compensated absences attributable to services already rendered and not contingent on a specific event that is outside the control of the employer and employee is accrued as employees earn the rights to the benefits.

School District employees who are employed for ten months are entitled to a minimum of ten paid sick leave days per fiscal school year. School District employees who are employed for twelve months are entitled to a minimum of twelve paid sick leave days per fiscal school year. Unused sick leave may be accumulated and carried forward to the subsequent years. School District employees are entitled to three personal days which may be carried forward to subsequent years. Vacation days not used during the year may not be accumulated and carried forward. Benefits paid in any future year will be calculated according to formulas outlined in the School Districts' agreements with the various employee unions and included in the current years' budget.

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Note 15:COMPENSATED ABSENCES (CONT’D)

The liability for vested compensated absences is recorded within those funds as the benefits accrue to employees. At June 30, 2016, the liability for compensated absences reported on the government-wide statement of net position was $2,447,409.29.

Note 16: INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

The composition of interfund balances as of June 30, 2016 is as follows:

Interfunds Interfunds

Fund Receivable Payable

General 89,951.13$ 52,846.37$

Special Revenue 5,037.00

Proprietary 6,029.60 89,074.93

Fiduciary 50,977.57

146,958.30$ 146,958.30$

The interfund receivables and payables above predominately resulted from payments made by certain funds on behalf of other funds. During the fiscal year 2017, the School District expects to liquidate such interfunds, depending upon the availability of cash flow.

Interfund Transfers:

Transfer In:

Capital ProjectFund

Transfer Out:

General Fund 10,817,250.00$

The interfund transfer from general fund to capital project fund was to transfer capital reserve for funding of various capital projects in accordance with Capital Reserve Statement of Purpose.

Note 17:CONTINGENCIES

Grantor Agencies - Amounts received or receivable from grantor agencies could be subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the School District expects such amount, if any, to be immaterial.

Litigation - The School District is a defendant in several legal proceedings that are in various stages of litigation. It is believed that the outcome, or exposure to the School District, from such litigation is either unknown or potential losses, if any, would not be material to the financial statements.

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Note 18:CONCENTRATIONS

The School District depends on financial resources flowing from, or associated with, both the federal government and the State of New Jersey. As a result of this dependency, the School District is subject to changes in specific flows of intergovernmental revenues based on modifications to federal and State laws and federal and State appropriations.

Note 19:COMMITMENTS

The School District had multiple construction projects ongoing as of the fiscal year ended June 30, 2016that are to continue into the subsequent fiscal years. These projects, which are related to the capital projects fund, are as follows:

Commitment Amount

Contract Date Outstanding

High School Roofing Project 01/04/10 6,537.90$

High School Window Replacement Project 05/23/14 400.00

School No. 2 Courtyard Drainage Project 05/23/14 4,200.00

Middle School Unit Vent Project 04/09/15 43,815.00

High School ADA and Security 01/16/15 235,195.00

Middle School Window and HVAC Replacement 01/16/15 127,189.39

School No. 4 Addition 08/26/15 4,970,499.92

High School Front Elevation 10/09/15 353,168.20

5,741,005.41$

Note 20:DEFICIT FUND BALANCES

The School District has a deficit fund balance of ($69,655.30) in the special revenue fund as of June 30, 2016 as reported in the fund statements (modified accrual basis). N.J.S.A. 18A:22-44.2 provides that in the event a state school aid payment is not made until the following school budget year, school districts must record the delayed one or more June state aid payments as revenue, for budget purposes only, in the current school budget year. The statute provides legal authority for school districts to recognize this revenue in the current budget year. For intergovernmental transactions, GASB Statement No. 33 requires that recognition (revenue, expenditure, asset, liability) should be in symmetry, i.e., if one government recognizes an asset, the other government recognizes a liability. Since the State is recording the June state aid payments in the subsequent fiscal year, the School District cannot recognize the June state aid payment on the GAAP financial statements until the year the State records the payable. Due to the timing difference of recording the June state aid payments, the general and special revenue fund balance deficit does not alone indicate that the School District is facing financial difficulties.

Pursuant to N.J.S.A. 18A:22-44.2 any negative unassigned general fund balance that is reported as a direct result from a delay in the June payments of state aid until the following fiscal year, is not considered in violation of New Jersey statute and regulation nor in need of corrective action. The School District deficit in the GAAP funds statements of $2,154,358.86 is less than the June state aid payments.

66


Note 21:FUND BALANCES

RESTRICTED

As stated in note 1, the restricted fund balance classification includes amounts that are restricted to specific purposes. Such restrictions, or constraints, are placed on the use of resources by either of the following: (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation. Specific restrictions of the School District’s fund balance are summarized as follows:

General Fund

For Excess Surplus - In accordance with N.J.S.A. 18A:7F-7, as amended, the designation of restricted fund balance - excess surplus is the result of a required calculation pursuant to the New Jersey Comprehensive Educational Improvement and Financing Act of 1996 (CEIFA). New Jersey school districts are required to restrict general fund balance at the fiscal year end of June 30 if they did not appropriate a required minimum amount as budgeted fund balance in their subsequent years’ budget. The excess fund balance at June 30, 2016 is $2,649,120.00. Additionally, $2,213,981.00 of excess fund balance generated during 2014-2015 has been restricted and designated for utilization in the 2016-2017 budget.

For Capital Reserve Account - As of June 30, 2016, the balance in the capital reserve account is $11,899,759.34. These funds are restricted for future capital outlay expenditures for capital projects in the School District’s approved Long Range Facilities Plan (LRFP).

For Maintenance Reserve Account - As of June 30, 2016, the balance in the maintenance reserve account is $2,003,955.80. These funds are restricted for the required maintenance of school facilities in accordance with the Educational Facilities Construction and Financing Act (EFCFA) (N.J.S.A. 18A:7G-9) as amended by P.L. 2004, c. 73 (S1701).

Capital Projects Fund - On June 4, 2010, the School District entered into two grant agreements with the State of New Jersey Schools Development Authority for $1,804,646.00 and $1,985,111.00of grant funds pursuant to the “Educational Facilities Construction and Financing Act” P.L. 2000, c.72 enacted on July 18, 2000 and amended on August 6, 2007 by P.L. 3008, c. 137. The grant agreements were approved to partially fund the roof replacement projects at the Winslow Township High School and Winslow Township Middle School. On May 23, 2014, the School District entered into two additional grant agreements with the State of New Jersey Development for $533,391.00 and $28,159.00. The grant agreements were approved to partially fund the High School Window Replacement Project and School No. 2 Courtyard Drainage Project. On January 16, 2015, the School District entered into two additional grant agreements with the State of New Jersey Development for $345,891.00 and $1,175,148.00. The grant agreements were approved to partially fund the High School ADA and Security Project and the Middle School Window and HVAC Replacement Project. The School District did not issue bonds to fund any portion of these projects. As of June 30, 2016, the restricted fund balance amount was $9,598,903.73.

Debt Service Fund - In accordance with N.J.A.C. 6A:23A-8.6, a district board of education shall appropriate annually all debt service fund balances in the budget certified for taxes unless expressly authorized and documented by the voters in a bond referendum. As a result, the School District has appropriated and included as an anticipated revenue for the fiscal year ending June 30, 2017 $1.00of debt service fund balance at June 30, 2016.

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Note 21:FUND BALANCES (CONT’D)

ASSIGNED

As stated in note 1, the assigned fund balance classification includes amounts that are constrained by the School District’s intent to be used for specific purposes, but are neither restricted nor committed. Specific assignments of the School District’s fund balance are summarized as follows:

General Fund

For Subsequent Year’s Expenditures - The School District has appropriated and included as anticipated revenue for the fiscal year ending June 30, 2017 $85,665.78 of general fund balance at June 30, 2016, resulting from the Special Education Medicaid Initiative (SEMI) reimbursement received during the fiscal year ended 2015 for reimbursement of previous fiscal year expenditures.

As of June 30, 2016, the School District had $142,404.71 of general fund balance, resulting from the Special Education Medicaid Initiative (SEMI) reimbursement received during the current fiscal year for reimbursement of previous fiscal year expenditures, which will be included as revenue in a future budget.

Other Purposes - As of June 30, 2016, the School District had $2,871,919.93 of encumbrances outstanding for purchase orders and contracts signed by the School District, but not completed, as of the close of the fiscal year.

UNASSIGNED

As stated in note 1, the unassigned fund balance classification represents fund balance that has not been restricted, committed, or assigned to specific purposes. The School District’s unassigned fund balance is summarized as follows:

General Fund - As of June 30, 2016, the unassigned fund balance of the general fund was a deficit of ($2,154,358.86). The deficit is a result from a delay in the payment of state aid until the following fiscal year. As stated in note 20, since the State is recording the June state aid payments in the subsequent fiscal year, the School District cannot recognize the June state aid payment on the GAAP financial statements until the year the State records the payable. Due to the timing difference of recording the June state aid payments, the general fund balance deficit does not alone indicate that the School District is facing financial difficulties. The unassigned deficit on the GAAP financial statements of $2,154,358.86 is less than the last state aid payment.

Special Revenue Fund - As of June 30, 2016, the fund balance of the special revenue fund was a deficit of ($69,655.30), thus resulting in the fund balance classification of unassigned. The deficit is a result from a delay in the payment of state aid until the following fiscal year. As stated in note 20,since the State is recording the June state aid payments in the subsequent fiscal year, the School District cannot recognize the June state aid payment on the GAAP financial statements until the year the State records the payable. Due to the timing difference of recording the June state aid payments, the special revenue fund balance deficit does not alone indicate that the School District is facing financial difficulties. The unassigned deficit on the GAAP financial statements of $69,655.30 is less than the last state aid payment.

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Note 22:RESTATEMENT OF NET POSITION BEFORE-AFTER SCHOOL PROGRAM

The beginning net position of the Business-Type Activities in the government-wide Statement of Activities and on the Proprietary Fund - Before-After School Program has been restated to record a prior period adjustment to correct revenues that have been determined to be uncollectible. The effect of the restatement was to decrease unrestricted net position and the change in net position for the fiscal year ended June 30, 2015 by $50,278.55 and had no impact on the current year change in net position.

Proprietary Fund –Business-Type Activities Before-After School Program

Beginning net position $1,360,147.71 $669,584.71Adjustment to correct revenue ( 50,278.55) ( 50,278.55)

Beginning net position, restated $1,309,869.16 $ 619,306.16

69

REQUIRED SUPPLEMENTARY INFORMATIONPART II

70

BUDGETARY COMPARISON SCHEDULES

71

26400 Exhibit C-1

General FundRequired Supplementary Information

Budgetary Comparison Schedule

VarianceBudget Final to Actual

Original Modifications / Final Favorable / Budget Transfers Budget Actual (Unfavorable)

REVENUES:

Local Sources:Local Tax Levy 45,799,758.00$ 45,799,758.00$ 45,799,758.00$ Tuition 2,657,047.00 2,657,047.00 3,637,579.52 980,532.52$ Transportation Fees 168,988.75 168,988.75 Interest Earned on Capital Reserve Funds 600.00 600.00 11,561.22 10,961.22 Interest Earned on Maintenance Reserve Funds 2,598.74 2,598.74Unrestricted Miscellaneous Revenues 100,000.00 100,000.00 486,239.35 386,239.35

Total - Local Sources 48,557,405.00 - 48,557,405.00 50,106,725.58 1,549,320.58

State Sources:Categorical Transportation Aid 1,066,545.00 1,066,545.00 1,066,545.00Extraordinary Aid 200,000.00 200,000.00 280,009.00 80,009.00Categorical Special Education Aid 3,025,665.00 3,025,665.00 3,025,665.00Equalization Aid 38,341,995.00 38,341,995.00 38,341,995.00Categorical Security Aid 1,389,418.00 1,389,418.00 1,389,418.00Adjustment Aid 209,733.00 209,733.00 209,733.00Per Pupil Growth Aid 46,290.00 46,290.00 46,290.00PARCC Readiness Aid 46,290.00 46,290.00 46,290.00Other State Aid 79,906.00 79,906.00TPAF Post Retirement Medical (On-Behalf - Non-Budgeted) 3,522,407.00 3,522,407.00Teacher's Pension & Annuity Fund (On-Behalf - Non-Budgeted) 2,817,840.00 2,817,840.00TPAF Non-contributory Insurance (On-Behalf - Non-Budgeted) 140,367.00 140,367.00Reimbursed T.P.A.F. Social Security Contributions 2,875,504.70 2,875,504.70

Total - State Sources 44,325,936.00 - 44,325,936.00 53,841,969.70 9,516,033.70

Federal Sources:Medicaid 143,829.00 143,829.00 169,748.69 25,919.69Medicaid - FY14 Cost Settlements 142,404.74 142,404.74

Total - Federal Sources 143,829.00 - 143,829.00 312,153.43 168,324.43

Total Revenues 93,027,170.00 - 93,027,170.00 104,260,848.71 11,233,678.71

(Continued)



72

26400 Exhibit C-1







EXPENDITURES:Current Expense:

Regular Programs - Instruction:Salaries of Teachers:

Local Contribution - Transfer to Special Revenue 438,356.00$ 438,356.00$ 438,356.00$ Kindergarten 1,215,725.00 (17,199.00)$ 1,198,526.00 1,197,016.24 1,509.76$ Grades 1-5 9,133,675.00 98,291.00 9,231,966.00 9,030,108.37 201,857.63Grades 6-8 5,633,683.00 (29,402.00) 5,604,281.00 5,308,432.58 295,848.42 Grades 9-12 6,868,182.00 2,615.00 6,870,797.00 6,643,909.49 226,887.51

Regular Programs - Home Instruction:Salaries of Teachers 25,000.00 25,000.00 13,620.00 11,380.00Purchased Professional - Educational Services 31,295.00 (5,000.00) 26,295.00 26,295.00

Regular Programs - Undistributed Instruction:Other Salaries for Instruction 28,000.00 28,000.00 25,847.50 2,152.50Purchased Professional - Educational Services 1,499,340.00 (46,697.00) 1,452,643.00 678,601.55 774,041.45Purchased Technical Services 1,560.00 17,133.00 18,693.00 17,808.25 884.75Other Purchased Services (400-500 Series) 209,476.00 22,963.95 232,439.95 182,913.69 49,526.26General Supplies 1,225,616.59 (130,911.14) 1,094,705.45 812,615.03 282,090.42 Textbooks 305,221.53 5,195.65 310,417.18 270,935.26 39,481.92Other Objects 12,750.00 4,539.20 17,289.20 5,385.95 11,903.25

Total Regular Programs 26,627,880.12 (78,471.34) 26,549,408.78 24,625,549.91 1,923,858.87

Learning and / or Language Disabilities:Salaries of Teachers 705,600.00 705,600.00 702,847.29 2,752.71Purchased Professional - Educational Services 198,205.00 109,148.00 307,353.00 283,180.62 24,172.38General Supplies 975.00 302.89 1,277.89 1,271.55 6.34Textbooks 8,142.76 8,142.76 3,022.42 5,120.34

Total Learning and / or Language Disabilities 912,922.76 109,450.89 1,022,373.65 990,321.88 32,051.77

Behavioral Disabilities:Salaries of Teachers 337,125.00 337,125.00 336,913.12 211.88Purchased Professional - Educational Services 88,653.00 (27,057.00) 61,596.00 59,320.61 2,275.39 General Supplies 800.00 139.56 939.56 935.46 4.10

Total Behavioral Disabilities 426,578.00 (26,917.44) 399,660.56 397,169.19 2,491.37

(Continued)

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EXPENDITURES (CONT'D):Current Expense (Cont'd):

Multiple Disabilities:Salaries of Teachers 529,000.00$ (2,000.00)$ 527,000.00$ 521,515.45$ 5,484.55$ Purchased Professional - Educational Services 173,116.00 31,634.00 204,750.00 175,630.02 29,119.98General Supplies 25,774.86 22,056.44 47,831.30 40,976.35 6,854.95

Total Multiple Disabilities 727,890.86 51,690.44 779,581.30 738,121.82 41,459.48

Resource Room / Resource Center:Salaries of Teachers 6,020,340.00 (75,370.00) 5,944,970.00 5,773,213.70 171,756.30Purchased Professional Educational Services 479,566.00 204,506.00 684,072.00 594,418.20 89,653.80General Supplies 32,050.00 5,933.71 37,983.71 37,189.03 794.68

Total Resource Room / Resource Center 6,531,956.00 135,069.71 6,667,025.71 6,404,820.93 262,204.78

Preschool Disabilities - Part Time:

Salaries of Teachers 478,325.00 (478,325.00) Purchased Professional Services - PSD 144,905.00 (144,905.00) General Supplies 10,480.00 (10,480.00)

Total Preschool Disabilities - Part Time 633,710.00 (633,710.00)

Preschool Disabilities - Full Time:

Salaries of Teachers 509,911.00 509,911.00 509,205.75 705.25Purchased Professional Services - PSD 205,721.00 205,721.00 202,247.51 3,473.49General Supplies 10,151.18 10,151.18 3,533.93 6,617.25

Total Preschool Disabilities - Full Time - 725,783.18 725,783.18 714,987.19 10,795.99

Home Instruction:Salaries of Teachers 7,000.00 7,000.00 14,000.00 11,899.00 2,101.00Purchased Professional - Educational Services 50,000.00 16,000.00 66,000.00 60,526.54 5,473.46

Total Home Instruction 57,000.00 23,000.00 80,000.00 72,425.54 7,574.46

Total Special Education - Instruction 9,290,057.62 384,366.78 9,674,424.40 9,317,846.55 356,577.85

Basic Skills / Remedial - Instruction:Salaries of Teachers 468,099.00 (84,377.00) 383,722.00 383,190.76 531.24

Total Basic Skills / Remedial - Instruction 468,099.00 (84,377.00) 383,722.00 383,190.76 531.24

(Continued)

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Bilingual Education - Instruction:Salaries of Teachers 322,175.00$ 322,175.00$ 321,416.25$ 758.75$ General Supplies 99.13$ 99.13 99.13

Total Bilingual Education - Instruction 322,175.00 99.13 322,274.13 321,515.38 758.75

School Sponsored Cocurricular Activities - Instruction:Salaries 239,000.00 31,000.00 270,000.00 263,873.87 6,126.13Purchased Services (300-500 series) 38,900.00 (4,824.50) 34,075.50 23,486.06 10,589.44Supplies and Materials 10,000.00 12,334.57 22,334.57 21,894.90 439.67Other Objects 1,000.00 2,150.00 3,150.00 2,871.73 278.27

Total School Sponsored Cocurricular Activities - Instruction 288,900.00 40,660.07 329,560.07 312,126.56 17,433.51

School Sponsored Athletics - Instruction:Salaries 525,708.00 (14,570.00) 511,138.00 507,429.79 3,708.21Purchased Services (300-500 series) 111,274.63 (49,905.00) 61,369.63 58,739.39 2,630.24Supplies and Materials 142,856.78 48,067.82 190,924.60 165,981.03 24,943.57Other Objects 20,200.00 12,296.00 32,496.00 31,470.25 1,025.75

Total School Sponsored Athletics - Instruction 800,039.41 (4,111.18) 795,928.23 763,620.46 32,307.77

Total Instruction 37,797,151.15 258,166.46 38,055,317.61 35,723,849.62 2,331,467.99

Undistributed Expenditures - Instruction:Tuition to Other LEA's Within State - Regular 541,662.61 320,313.50 861,976.11 455,815.16 406,160.95 Tuition to Other LEA's Within State - Special 260,696.62 819,802.12 1,080,498.74 430,819.26 649,679.48Tuition to County Vocational School District - Regular 785,904.00 30,000.00 815,904.00 758,979.00 56,925.00Tuition to CSSD and Regional Day Schools 986,752.36 312,384.46 1,299,136.82 1,282,726.80 16,410.02Tuition to Private Schools for the Disabled - Within State 3,133,830.69 (1,149,037.46) 1,984,793.23 1,863,803.61 120,989.62Tuition - State Facilities 269,522.00 (26,000.00) 243,522.00 237,216.00 6,306.00Tuition - Other 120,000.00 60,000.00 180,000.00 180,000.00

Total Undistributed Expenditures - Instruction 6,098,368.28 367,462.62 6,465,830.90 5,209,359.83 1,256,471.07

(Continued)

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Undistributed Expenditures - Attendance and Social Work:Salaries 54,223.00$ 2,259.29$ 56,482.29$ 56,482.29$ Other Objects 100,000.00 (27,000.00) 73,000.00 3,545.55 69,454.45$

Total Undistributed Expenditures - Attendance and Social Work 154,223.00 (24,740.71) 129,482.29 60,027.84 69,454.45

Undistributed Expenditures - Health Services:Salaries 723,690.00 7,280.71 730,970.71 694,559.09 36,411.62Purchased Professional and Technical Services 68,552.00 20,425.00 88,977.00 83,330.00 5,647.00Other Purchased Services (400-500 series) 1,750.00 (1,500.00) 250.00 250.00Supplies and Materials 20,263.00 (1,757.14) 18,505.86 18,056.62 449.24

Total Undistributed Expenditures - Health Services 814,255.00 24,448.57 838,703.57 795,945.71 42,757.86

Undistributed Expenditures - Other Support Services -Students - Related Services:

Salaries 1,585,824.00 (10,507.00) 1,575,317.00 1,468,594.92 106,722.08Purchased Professional - Educational Services 330,000.00 (70,000.00) 260,000.00 243,235.35 16,764.65Supplies and Materials 10,000.00 10,000.00 8,610.78 1,389.22

Total Undistributed Expenditures - Other Support Services -Students - Related Services 1,925,824.00 (80,507.00) 1,845,317.00 1,720,441.05 124,875.95

Undistributed Expenditures - Other Support Services -Students - Extra Services:

Purchased Professional and Technical Services 2,306,098.82 722,450.00 3,028,548.82 2,932,090.92 96,457.90

Total Undistributed Expenditures - Other Support Services -Students - Extra Services 2,306,098.82 722,450.00 3,028,548.82 2,932,090.92 96,457.90

Undistributed Expenditures - Other Support Services -Students - Regular:

Salaries of Other Professional Staff 987,925.00 42,625.00 1,030,550.00 1,009,550.82 20,999.18 Salaries of Secretarial and Clerical Assistants 108,446.00 54,224.00 162,670.00 151,372.51 11,297.49Other Purchased Professional and Technical Services 5,300.00 880.00 6,180.00 6,180.00Miscellaneous Purchased Services (400-500 Series other than Residential Costs) 7,225.00 7,225.00 4,887.60 2,337.40 Supplies and Materials 9,669.00 (462.21) 9,206.79 7,165.29 2,041.50Other Objects 600.00 1000.00 1,600.00 1,109.00 491.00

Total Undistributed Expenditures - Other Support Services -Students - Regular 1,119,165.00 98,266.79 1,217,431.79 1,180,265.22 37,166.57

(Continued)

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Undistributed Expenditures - Other Support Services -Students - Special:

Salaries of Other Professional Staff 2,281,358.00$ (61,614.40)$ 2,219,743.60$ 2,150,187.14$ 69,556.46$ Salaries of Secretarial and Clerical Assistants 298,863.00 42,576.88 341,439.88 335,739.88 5,700.00Unused Vacation Payment to Terminated/Retired Staff 7,907.52 7,907.52 7,907.52Purchased Professional - Educational Services 2,000.00 (81.75) 1,918.25 1,918.25Other Purchased Services (400-500 Series) 27,000.00 6,000.00 33,000.00 27,798.20 5,201.80Miscellaneous Purchased Services (400-500 Series other than Residential Costs) 20,500.00 (6,000.00) 14,500.00 12,620.77 1,879.23Supplies and Materials 38,706.21 9,479.46 48,185.67 47,578.40 607.27Other Objects 1,500.00 (1,500.00)

Total Undistributed Expenditures - Other Support Services -Students - Special 2,669,927.21 (3,232.29) 2,666,694.92 2,583,750.16 82,944.76

Undistributed Expenditures - Improvement of Instruction Services:Salaries of Supervisors of Instruction 396,680.00 10,989.25 407,669.25 407,143.02 526.23 Salaries of Other Professional Staff 100.00 100.00 100.00Salaries of Secretarial and Clerical Assistants 53,950.00 1.00 53,951.00 53,950.08 0.92Purchased Prof - Educational Services 31,467.36 31,467.36 31,209.83 257.53Other Purchased Professional & Technical Services 125,000.00 (28000.00) 97,000.00 95,415.61 1,584.39Other Purchased Services (400-500 series) 4,000.00 3,150.00 7,150.00 2,757.93 4,392.07Supplies and Materials 14,000.00 14,000.00 275.59 13,724.41Other Objects 6,000.00 6,000.00 6,000.00

Total Undistributed Expenditures - Improvement of Instruction Services 631,197.36 (13,859.75) 617,337.61 590,752.06 26,585.55

Undistributed Expenditures - Educational Media Services / SchoolLibrary:

Salaries 606,450.00 606,450.00 562,175.78 44,274.22 Purchased Professional and Technical Services 28,000.00 3,834.00 31,834.00 31,834.00 Other Purchased Services (400-500 series) 17,193.00 (10,050.00) 7,143.00 3,719.19 3,423.81 Supplies and Materials 30,970.00 (4,133.32) 26,836.68 23,147.60 3,689.08Other Objects 400.00 (400.00)

Total Undistributed Expenditures - Educational Media Services / School Library 683,013.00 (10,749.32) 672,263.68 589,042.57 83,221.11

(Continued)

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Undistributed Expenditures - Instructional Staff Training Services:Other Salaries 50,000.00$ (8,462.25)$ 41,537.75$ 34,591.69$ 6,946.06$ Purchased Professional - Educational Services 85,250.00 85,250.00 59,226.50 26,023.50Other Purchased Services (400-500 series) 4,025.00 4,371.43 8,396.43 6,471.43 1,925.00Supplies and Materials 1,000.00 1,000.00 1,000.00Other Objects 1,000.00 1,000.00 1,000.00

Total Undistributed Expenditures - Instructional Staff Training Services: 141,275.00 (4,090.82) 137,184.18 100,289.62 36,894.56

Undistributed Expenditures - Support Services - General Administration:Salaries 260,501.00 9,252.00 269,753.00 268,859.45 893.55Legal Services 200,000.00 (175.00) 199,825.00 120,501.79 79,323.21Audit Fees 59,160.00 59,160.00 55,724.00 3,436.00Architectural and Engineering Services 79,281.61 79,281.61 5,951.26 73,330.35Other Purchased Professional Services 25,320.00 (500.00) 24,820.00 9,130.00 15,690.00Communications / Telephone 442,415.00 573.35 442,988.35 384,131.44 58,856.91BOE Other Purchased Services 10,000.00 (2,000.00) 8,000.00 333.41 7,666.59Other Purchased Services (400-500 series) 103,000.00 2,445.00 105,445.00 36,588.55 68,856.45General Supplies 8,500.00 230.00 8,730.00 5,956.57 2,773.43Judgments Against the School District 215,000.00 (9,825.35) 205,174.65 23,741.03 181,433.62Miscellaneous Expenditures 15,000.00 100.00 15,100.00 7,345.88 7,754.12BOE Membership Dues and Fees 35,000.00 (100.00) 34,900.00 29,569.57 5,330.43

Total Undistributed Expenditures - Support Services - General Administration 1,453,177.61 (0.00) 1,453,177.61 947,832.95 505,344.66

Undistributed Expenditures - Support Services - School Administration:

Salaries of Principals / Assistant Principals 1,995,515.00 536.16 1,996,051.16 1,996,050.12 1.04Salaries of Other Professional Staff 232,860.00 19,097.63 251,957.63 251,957.63 Salaries of Secretarial and Clerical Assistants 1,139,934.00 (64,878.79) 1,075,055.21 1,056,523.26 18,531.95 Purchased Professional and Technical Services 2,500.00 (2,500.00) Other Purchased Services (400-500 series) 45,250.00 (75.00) 45,175.00 27,408.71 17,766.29Supplies and Materials 126,841.17 (10,905.98) 115,935.19 59,812.17 56,123.02Other Objects 19,340.00 (193.00) 19,147.00 16,786.00 2,361.00

Total Undistributed Expenditures - Support Services - School Administration 3,562,240.17 (58,918.98) 3,503,321.19 3,408,537.89 94,783.30

(Continued)

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Undistributed Expenditures - Central Services:Salaries 958,553.00$ (5,578.43)$ 952,974.57$ 864,782.79$ 88,191.78$ Unused Vacation Payment to Terminated/Retired Staff 5,578.43 5,578.43 5,578.43 Purchased Professional Services 156,225.00 (13,100.00) 143,125.00 29,468.53 113,656.47Purchased Technical Services 46,830.00 46,830.00 20,260.00 26,570.00Miscellaneous Purchased Services 72,485.00 (2,246.00) 70,239.00 38,735.09 31,503.91Supplies and Materials 49,258.15 13,100.00 62,358.15 38,122.91 24,235.24Miscellaneous Expenditures 11,500.00 11,500.00 3,487.54 8,012.46

Total Undistributed Expenditures - Central Services 1,294,851.15 (2,246.00) 1,292,605.15 1,000,435.29 292,169.86

Undistributed Expenditures - Administration Information Technology:Salaries 180,513.00 180,513.00 170,314.33 10198.67Purchased Technical Services 439,200.00 439,200.00 401,754.34 37,445.66 Other Purchased Services 288,174.00 288,174.00 122,952.36 165,221.64 Supplies and Materials 28,914.00 28,914.00 28,914.00

Total Undistributed Expenditures - Administration Information Technology 936,801.00 - 936,801.00 695,021.03 241,779.97

Undistributed Expenditures - Required Maintenance for SchoolFacilities:

Cleaning, Repair and Maintenance Services 1,113,673.56 (65,001.01) 1,048,672.55 495,558.73 553,113.82

Total Undistributed Expenditures - Required Maintenance for SchoolFacilities 1,113,673.56 (65,001.01) 1,048,672.55 495,558.73 553,113.82

Undistributed Expenditures - Operation and Maintenanceof Plant Services:

Salaries 44,739.00 4,467.75 49,206.75 49,206.75 Purchased Professional and Technical Services 50,548.00 (4,967.75) 45,580.25 35,000.00 10,580.25 Cleaning, Repair and Maintenance Services 3,079,651.01 (51,002.39) 3,028,648.62 2,958,026.92 70,621.70 Other Purchased Property Services 324,000.00 5,685.54 329,685.54 329,638.00 47.54Insurance 457,000.00 457,000.00 457,000.00General Supplies 420,263.86 (12,439.61) 407,824.25 382,216.48 25,607.77Energy (Natural Gas) 495,000.00 (60,000.00) 435,000.00 232,393.34 202,606.66Energy (Electricity) 1,147,000.00 60,000.00 1,207,000.00 1,197,610.70 9,389.30Energy (Oil) 15,000.00 15,000.00 5,490.60 9,509.40Other Objects 500.00 500.00 500.00

Total Undistributed Expenditures - Operation and Maintenanceof Plant Services 6,033,201.87 (57,756.46) 5,975,445.41 5,646,582.79 328,862.62

(Continued)

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Undistributed Expenditures - Care and Upkeep of Grounds:Cleaning, Repair and Maintenance Services 306,645.20$ (37,401.00)$ 269,244.20$ 148,508.81$ 120,735.39$ General Supplies 10,000.00 10,000.00 9,769.29 230.71

Total Undistributed Expenditures - Care and Upkeep of Grounds 316,645.20 (37,401.00) 279,244.20 158,278.10 120,966.10

Undistributed Expenditures - Security:Personal Services - Salaries 88,440.00 (26,880.00) 61,560.00 61,560.00 Security Supplies and Materials 61,560.00 (35,920.00) 25,640.00 1,000.00 24,640.00

Total Undistributed Expenditures - Security Equipment 150,000.00 (62,800.00) 87,200.00 62,560.00 24,640.00

Undistributed Expenditures - Student Transportation Services:Salaries for Pupil Transportation (Between Home and School) - Regular 2,405,593.00 39,656.00 2,445,249.00 2,273,780.21 171,468.79 Salaries for Pupil Transportation (Between Home and School) - Special Ed 399,681.00 (39,656.00) 360,025.00 296,354.15 63,670.85 Management Fee - ESC & CTSA Transportation Programs 75,000.00 7,179.21 82,179.21 82,179.21 Other Purchased Professional and Technical Services 319,900.00 (5,964.00) 313,936.00 310,095.34 3,840.66Cleaning, Repair, & Maintenance Services 263,423.74 348,861.60 612,285.34 596,829.21 15,456.13Rental Payments- School Buses 1,000.00 (1,000.00) Contracted Services (Between Home and School) - Vendors 140,000.00 140,000.00 140,000.00Contracted Services (Between Home and School) - Joint Agreement 35,000.00 60909.09 95,909.09 85,366.16 10,542.93Contracted Services (Special Education Students) - Vendors 250,000.00 (80,061.72) 169,938.28 169,938.28Contracted Services (Special Education Students) - Joint Agreement 50,000.00 11,200.99 61,200.99 61,200.99Aid-in-Lieu-of Payments 325,000.00 (46,335.27) 278,664.73 278,664.73Contracted Services - Aid-in-Lieu of Payments - Choice Schools 140,000.00 6,558.93 146,558.93 146,558.93Contracted Services (Regular Students) - ESCs & CTSAs 910,000.00 (10,000.00) 900,000.00 900,000.00Contracted Services (Special Education Students) - ESCs & CTSAs 500,000.00 117,383.23 617,383.23 617,383.23Miscellaneous Purchased Services - Transportation 303,190.00 (18,387.40) 284,802.60 275,438.72 9,363.88Supplies and Materials 23,556.44 7,133.91 30,690.35 25,468.59 5,221.76Transportation Supplies 1,400,000.00 (477,787.32) 922,212.68 745,969.03 176,243.65Other Object 19,000.00 3,361.41 22,361.41 22,282.78 78.63

Total Undistributed Expenditures - Student Transportation Services 7,560,344.18 (76,947.34) 7,483,396.84 7,027,509.56 455,887.28

Unallocated Benefits:Social Security Contributions 700,000.00 700,000.00 557,990.28 142,009.72 Other Retirement Contributions - Regular 901,669.00 (275,000.00) 626,669.00 546,073.75 80,595.25Unemployment Compensation 500,000.00 500,000.00 169,768.07 330,231.93Workmen's Compensation 700,000.00 700,000.00 659,350.15 40,649.85Health Benefits 11,635,430.00 (1,324,182.45) 10,311,247.55 9,377,924.11 933,323.44Tuition Reimbursement 200,000.00 200,000.00 60,596.47 139,403.53Other Employee Benefits 810,000.00 (239,349.17) 570,650.83 566,964.60 3,686.23Unused Sick Payment to Terminated/Retired Staff 345,000.00 345,000.00 229,788.59 115,211.41

Total Unallocated Benefits 15,447,099.00 (1,493,531.62) 13,953,567.38 12,168,456.02 1,785,111.36(Continued)

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On-behalf Contributions (non-budgeted):TPAF Post Retirement Medical (On-Behalf - Non-Budgeted) 3,522,407.00$ (3,522,407.00)$ Teacher's Pension & Annuity Fund (On-Behalf - Non-Budgeted) 2,817,840.00 (2,817,840.00)TPAF Non-contributory Insurance (On-Behalf - Non-Budgeted) 140,367.00 (140,367.00)

Reimbursed T.P.A.F. Social Security Contributions (non-budgeted) 2,875,504.70 (2,875,504.70)

Total On-behalf Contributions - - - 9,356,118.70 (9,356,118.70)

Total Undistributed Expenditures 54,411,380.41$ (779,154.32)$ 53,632,226.09$ 56,728,856.04 (3,096,629.95)

Total Current Expense 92,208,531.56 (520,987.86) 91,687,543.70 92,452,705.66 (765,161.96)

Capital Outlay:Equipment:

Undistributed Expenditures - Central Services 4,650.00 2,246.00 6,896.00 4,650.00 2,246.00 Undistributed Expenditures - Admin Info Tech 624,025.00 624,025.00 400,003.00 224,022.00 Undistributed Expenditures - Custodial Services 13,701.65 13,701.65 13,701.65 Undistributed Expenditures - Care and Upkeep of Grounds 67,026.00 147,808.81 214,834.81 214,834.78 0.03 Undistributed Expenditures - Security Equipment 37,170.00 234,400.00 271,570.00 37,170.00 234,400.00 School Buses - Regular 699,930.00 (92,747.40) 607,182.60 199,930.00 407,252.60 School Buses - Special 685,240.00 171,825.80 857,065.80 485,240.00 371,825.80 Grades 1-5 30,375.00 30,375.00 30,375.00 Grades 6-8 6,750.00 2,990.00 9,740.00 9,740.00 Grades 9-12 36,504.00 28,400.00 64,904.00 36,504.00 28,400.00Instruction Equipment 32,815.99 32,815.99 32,815.99

Total Equipment 2,224,485.99 508,624.86 2,733,110.85 1,464,964.42 1,268,146.43

Facilities Acquisition and Constructing Services:Legal Services 47,520.00 (47,520.00) Architectural / Engineering Services 1,020,150.00 (897,700.00) 122,450.00 75,843.45 46,606.55Other Purchased Prof. and Tech. Services 409,080.00 (401,330.00) 7,750.00 7,750.00Construction Services 10,186,000.00 (8,977,000.00) 1,209,000.00 766,370.97 442,629.03Other Objects 586,800.00 (475,200.00) 111,600.00 111,600.00Assessment for Debt Service on SDA Funding 26,043.00 26,043.00 26,043.00

Total Facilities Acquisition and Constructing Services 12,275,593.00 (10,798,750.00) 1,476,843.00 868,257.42 608,585.58

Total Capital Outlay 14,500,078.99 (10,290,125.14) 4,209,953.85 2,333,221.84 1,876,732.01

(Continued)

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EXPENDITURES (CONT'D):Transfer of Funds to Charter Schools 459,820.00$ 12,363.00$ 472,183.00$ 472,183.00$ Interest Deposit to Capital Reserve 600.00 600.00 600.00$

Total Expenditures 107,169,030.55 (10,798,750.00) 96,370,280.55 95,258,110.50 1,112,170.05

Excess (Deficiency) of Revenues Over (Under) Expenditures (14,141,860.55) 10,798,750.00 (3,343,110.55) 9,002,738.21 12,345,848.76

Other Financing Sources (Uses):Transfer to Capital Projects Fund (10,817,250.00) (10,817,250.00) (10,817,250.00)

Total Other Financing Sources (Uses) - (10,817,250.00) (10,817,250.00) (10,817,250.00) -

Excess (Deficiency) of Revenues and Other Financing SourcesOver (Under) Expenditures and Other Financing Uses (14,141,860.55) (18,500.00) (14,160,360.55) (1,814,511.79) 12,345,848.76

Fund Balances, July 1 25,775,618.22 (25,775,618.22) 25,775,618.22 25,775,618.22 25,775,618.22

Fund Balances, June 30 11,633,757.67$ (25,794,118.22)$ 11,615,257.67$ 23,961,106.43$ 38,121,466.98$

Recapitulation:Restricted Fund Balance:

Capital Reserve 11,899,759.34$ Maintenance Reserve 2,003,955.80Excess Surplus - Designated for Subsequent Year's Expenditures 2,213,981.00 Excess Surplus 2,649,120.00

Assigned Fund Balance:Year-End Encumbrances 2,871,919.93 Designated for Subsequent Year's Expenditures - SEMI ARRA 85,665.78 Designated for Subsequent Year's Expenditures - SEMI 13-14 Cost Settlement 142,404.74

Unassigned Fund Balance 2,094,299.84

23,961,106.43 Reconciliation to Governmental Funds Statement (GAAP):

Last State Aid Payment Not Recognized on GAAP Basis 4,248,658.70

Fund Balance per Governmental Funds (GAAP) 19,712,447.73$

82

26400 Exhibit C-2

Special Revenue FundRequired Supplementary Information


VarianceFinal to Actual

Original Budget Final Favorable /Budget Transfers Budget Actual (Unfavorable)

REVENUES:

Local Sources:Revenue from Local Sources 49,063.81$ 49,063.81$ 30,299.68$ (18,764.13)$

Total - Local Sources - 49,063.81 49,063.81 30,299.68 (18,764.13)

State Sources:Preschool Education Aid 1,331,447.00$ 1,331,447.00 1,199,062.84 (132,384.16)School Based Youth Program 220,462.00 52,666.00 273,128.00 269,144.19 (3,983.81)Nonpublic Aid 87,520.00 40,507.00 128,027.00 58,332.27 (69,694.73)

Total - State Sources 1,639,429.00 93,173.00 1,732,602.00 1,526,539.30 (206,062.70)

Federal Sources:Title I 765,124.00 677,945.34 1,443,069.34 1,336,779.26 (106,290.08)Title II Part A 165,685.00 153,785.43 319,470.43 298,350.98 (21,119.45)Title III 18,877.00 866.03 19,743.03 14,687.42 (5,055.61)Title III - Immigrant 11,789.54 11,789.54 8,794.05 (2,995.49)I.D.E.A., Part B 1,055,395.00 436,247.73 1,491,642.73 1,367,822.19 (123,820.54)I.D.E.A., Part B, Preschool Incentive 80,412.86 80,412.86 72,016.00 (8,396.86)JROTC 49,245.00 20,618.97 69,863.97 69,863.97Carl D. Perkins Vocational and Technical Education Act 52,239.00 (21,735.00) 30,504.00 29,892.15 (611.85)

Total - Federal Sources 2,106,565.00 1,359,930.90 3,466,495.90 3,198,206.02 (268,289.88)

Total Revenues 3,745,994.00 1,502,167.71 5,248,161.71 4,755,045.00 (493,116.71)

(Continued)



83

26400 Exhibit C-2

Special Revenue FundRequired Supplementary Information


VarianceFinal to Actual

Original Budget Final Favorable /Budget Transfers Budget Actual (Unfavorable)



EXPENDITURES:Instruction: Salaries of Teachers 1,674,511.00$ (240,426.03)$ 1,434,084.97$ 1,353,719.61$ 80,365.36$ Purchased Professional and Technical Services 111,339.00 293,440.00 404,779.00 314,597.43 90,181.57 Other Purchased Services (400-500 series) 964,882.00 370,394.00 1,335,276.00 1,254,371.61 80,904.39 Supplies and Materials 50,000.00 497,604.67 547,604.67 475,784.14 71,820.53 General Supplies 3,302.00 (1,066.00) 2,236.00 1,953.00 283.00 Textbooks 6,149.00 (1,238.00) 4,911.00 4,902.75 8.25 Other Objects 2,686.00 2,686.00 1,888.13 797.87

Total Instruction 2,810,183.00 921,394.64 3,731,577.64 3,407,216.67 324,360.97

Support Services: Personal Services - Salaries 90,513.00 40,131.00 130,644.00 130,222.92 421.08 Salaries of Program Directors 133,666.00 133,666.00 133,465.35 200.65 Salaries of Secretarial and Clerical Assistants 44,839.44 8,410.56 53,250.00 52,037.79 1,212.21 Other Salaries 102,100.00 (28,709.00) 73,391.00 72,390.92 1,000.08 Personal Services - Employee Benefits 304,936.56 115,258.94 420,195.50 389,702.65 30,492.85 Purchased Professional and Technical Services 18,969.00 196,024.93 214,993.93 185,610.77 29,383.16 Purchased Educational Services - Contracted Pre-K 180,000.00 67,000.00 247,000.00 229,286.76 17,713.24 Purchased Professional Services 5,000.00 5,000.00 2,760.00 2,240.00 Contracted Services - Transportation 10,000.00 10,000.00 5,088.10 4,911.90 Travel 3,000.00 2,226.83 5,226.83 3,145.58 2,081.25 Other Purchased Services (400-500 series) 75,279.00 75,279.00 64,217.50 11,061.50 Supplies and Materials 42,787.00 70,072.81 112,859.81 51,540.34 61,319.47 Other Objects 25,078.00 25,078.00 21,349.13 3,728.87

Total Support Services 935,811.00 570,773.07 1,506,584.07 1,340,817.81 165,766.26

Facilities Acquisition and Construction Services: Instructional Equipment 10,000.00 10,000.00 7,010.52 2,989.48

Facilities Acquisition and Construction Services - 10,000.00 10,000.00 7,010.52 2,989.48

Total Expenditures 3,745,994.00 1,502,167.71 5,248,161.71 4,755,045.00 493,116.71

Excess (Deficiency) of Revenues Over (Under) Expenditures -$ -$ -$ -$ -$

84

26400 Exhibit C-3

Required Supplementary InformationBudgetary Comparison Schedule

Note to RSI

Note A - Explanation of Differences between Budgetary Inflows and Outflows and GAAP Revenues and Expenditures.

SpecialGeneral Revenue

Fund FundSources / Inflows of Resources:

Actual amounts (budgetary basis) "revenues" from the budgetary comparison schedules 104,260,848.71$ 4,755,045.00$

Differences - Budget to GAAP: Grant accounting budgetary basis differs from GAAP in that encumbrances are recognized as expenditures, and the related revenue is recognized. 1,764.54

The last State aid payment is recognized as revenue for budgetary purposes, and differs from GAAP which does not recognize this revenue until the subsequent year when the State recognizes the related expense (GASB 33) received July 2015. 4,276,941.10 38,480.90

The last State aid payment is recognized as revenue for budgetary purposes, and differs from GAAP which does not recognize this revenue until the subsequent year when the State recognizes the related expense (GASB 33) received July 2016. (4,248,658.70) (69,655.30)

Total revenues as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds 104,289,131.11$ 4,725,635.14$

Uses / Outflows of Resources:

Actual amounts (budgetary basis) "total expenditures" from the budgetary comparison schedule 95,258,110.50$ 4,755,045.00$

Differences - Budget to GAAP: Encumbrances for supplies and equipment ordered but not received is reported in the year the order is placed for budgetary purposes, but in the year the supplies are received for financial reporting purposes. 1,764.54

Total expenditures as reported on the statement of revenues, expenditures, and changes in fund balances - governmental funds (B-2) 95,258,110.50$ 4,756,809.54$



85

REQUIRED SUPPLEMENTARY INFORMATIONPART III

86

26400 Exhibit L-1


2015 2014 2013

School District's Proportion of the Net Pension Liability 0.0627571293% 0.0664376010% 0.0644432863%

School District's Proportionate Share of the Net Pension Liability 14,087,718.00$ 12,438,936.00$ 12,316,392.00$

School District's Covered Payroll (Plan Measurement Period) 4,639,976.00$ 4,379,301.00$ 4,592,059.00$

School District's Proportionate Share of the Net Pension

Liability as a Percentage of it's Covered Payroll 303.62% 284.04% 268.21%

Plan Fiduciary Net Position as a Percentage of the Total

Pension Liability 47.93% 52.08% 48.72%

Note: This schedule is presented to illustrate the requirement to show information for 10 years.

However, until a full 10-year trend is compiled, this presentation will only include information

for those years for which information is available.

Measurement Date Ending June 30,


Schedule of the School District's Proportionate Share of the Net Pension Liability

Public Employees' Retirement System (PERS)

Last Three Fiscal Years

87

26400 Exhibit L-2


2016 2015 2014

Contractually Required Contribution 615,470.00$ 539,543.00$ 547,702.00$

Contributions in Relation to the

Contractually Required Contribution (615,470.00) (539,543.00) (547,702.00)

Contribution Deficiency (Excess) -$ -$ -$

School District's Covered Payroll 4,660,081.00$ 4,413,000.00$ 4,379,301.00$

Contributions as a Percentage of

School District's Covered-Employee Payroll 13.21% 12.23% 12.51%




Fiscal Year Ended June 30,


Schedule of the School District's Contributions



88

26400 Exhibit L-3


2015 2014 2013

School District's Proportion of the Net Pension Liability 0.00% 0.00% 0.00%

State's Proportion of the Net Pension Liability

Associated with the School District 100.00% 100.00% 100.00%

100.00% 100.00% 100.00%

School District's Proportionate Share of the Net Pension Liability -$ -$ -$

State's Proportionate Share of the Net Pension Liability

Associated with the School District 233,797,882.00 193,623,176.00 197,213,129.00

233,797,882.00$ 193,623,176.00$ 197,213,129.00$

School District's Covered Payroll (Plan Measurement Date) 43,866,644.00$ 36,422,038.00$ 36,530,214.00$

School District's Proportionate Share of the Net Pension


State's Proportionate Share of the Net Pension


Plan Fiduciary Net Position as a Percentage of the Total

Pension Liability 28.71% 33.64% 33.76%




Measurement Date Ending June 30,


Schedule of the School District's Proportionate Share of the Net Pension Liability

Teachers' Pension and Annuity Fund (TPAF)


89

26400 Exhibit L-4


This schedule is not applicable.

The School District is not required to make any contributions towards TPAF.

There is a special funding situation where the State of New Jersey pays 100% of the required contributions.

Required Supplementary InformationSchedule of School District's Contributions

Teachers' Pension and Annuity Fund (TPAF)Last 10 Fiscal Years

90

26400 Exhibit L-5



Changes in Benefit Terms - None

Changes in Assumptions - The discount rate changed from 5.39% as of June 30, 2014, to 4.90% as of June 30, 2015,

in accordance with Paragraph 44 of GASB Statement No. 67.

Teachers' Pension and Annuity Fund (TPAF)

Changes in Benefit Terms - None

Changes in Assumptions - The discount rate changed from 4.68% as of June 30, 2014, to 4.13% as of June 30, 2015,

in accordance with Paragraph 44 of GASB Statement No. 67.

Notes to Required Supplementary Information - Part III


91

OTHER SUPPLEMENTARY INFORMATION

92

SPECIAL REVENUE FUND

93

26400 Exhibit E-1a

Special Revenue Fund

Combining Schedule of Revenues and Expenditures - Budgetary Basis

Title II - Part A, Total

Improving Teacher Carried

Title I - Part A Qualify State Grants Title III Title III - Immigrant Basic Preschool Forward

REVENUES:

Federal Sources 1,336,779.26$ 298,350.98$ 14,687.42$ 8,794.05$ 1,367,822.19$ 72,016.00$ 3,098,449.90$

State Sources

Local Sources

Total Revenues 1,336,779.26 298,350.98 14,687.42 8,794.05 1,367,822.19 72,016.00 3,098,449.90

EXPENDITURES:

Instruction:

Salaries of Teachers 592,079.15 2,400.00 7,320.00 5,000.00 21,320.00 628,119.15

Purchased Professional and Technical Services 137,582.57 137,595.91 275,178.48

Other Purchased Services (400-500 series) 1,182,355.61 72,016.00 1,254,371.61

Supplies and Materials 375,389.43 5,781.94 6,667.44 1,411.55 24,213.58 413,463.94

General Supplies

Textbooks

Other Objects

Total Instruction 1,105,051.15 145,777.85 13,987.44 6,411.55 1,227,889.19 72,016.00 2,571,133.18

Support Services:

Personal Services - Salaries 39,231.00 90,511.92 129,742.92

Salaries of Program Directors

Salaries of Secretarial and Clerical Assistants

Other Salaries

Personal Services - Employee Benefits 120,287.00 183.60 559.98 382.50 28,160.06 149,573.14

Purchased Professional and Technical Services 12,918.75 140,477.78 2,000.00 6,897.00 162,293.53

Purchased Educational Services - Contracted Pre-K

Purchased Professional Services

Contracted Services - Transportation

Travel

Other Purchased Services (400-500 series) 53,604.00 7,353.50 60,957.50

Supplies and Materials 5,107.86 11,911.75 17,019.61

Other Objects 579.50 140.00 719.50

Total Support Services 231,728.11 152,573.13 699.98 2,382.50 132,922.48 - 520,306.20

Facilities Acquisition and Construction Services:

Instructional Equipment 7,010.52 7,010.52

Facilities Acquisition and Construction Services - - 7,010.52 7,010.52

Total Expenditures 1,336,779.26 298,350.98 14,687.42 8,794.05 1,367,822.19 72,016.00 3,098,449.90

Excess (Deficiency) of Revenues Over (Under) Expenditures - - - - - - -

(Continued)



NCLB

I.D.E.A Part B

94

26400 Exhibit E-1b


Combining Schedule of Program Revenues and Expenditures - Budgetary Basis

Carl Perkins

Total Vocational NJ Nonpublic NJ Nonpublic NJ Nonpublic Total

Brought and Technical Textbook Aid, NJ Nonpublic Handicapped Auxiliary Carried

Forward JROTC Education Act Ch. 194, L. 1979 Technology Aid, Services Ch. 193 Services Ch. 192 Forward

REVENUES:

Federal Sources 3,098,449.90$ 69,863.97$ 29,892.15$ 3,198,206.02$

State Sources 4,902.75$ 1,953.00$ 13,893.15$ 28,125.77$ 48,874.67

Local Sources

Total Revenues 3,098,449.90 69,863.97 29,892.15 4,902.75 1,953.00 13,893.15 28,125.77 3,247,080.69

EXPENDITURES:

Instruction:

Salaries of Teachers 628,119.15 69,863.97 697,983.12

Purchased Professional and Technical Services 275,178.48 1,200.00 13,893.15 24,325.80 314,597.43

Other Purchased Services (400-500 series) 1,254,371.61 1,254,371.61


General Supplies 1,953.00 1,953.00

Textbooks 4,902.75 4,902.75

Other Objects

Total Instruction 2,571,133.18 69,863.97 25,758.60 4,902.75 1,953.00 13,893.15 24,325.80 2,711,830.45

Support Services:

Personal Services - Salaries 129,742.92 480.00 130,222.92

Salaries of Program Directors

Salaries of Secretarial and Clerical Assistants

Other Salaries

Personal Services - Employee Benefits 149,573.14 36.72 149,609.86


Purchased Educational Services - Contracted Pre-K

Purchased Professional Services

Contracted Services - Transportation

Travel 2,226.83 2,226.83


Supplies and Materials 17,019.61 17,019.61

Other Objects 719.50 719.50

Total Support Services 520,306.20 - 4,133.55 - - - 3,799.97 528,239.72



Facilities Acquisition and Construction Services 7,010.52 - - - - - - 7,010.52

Total Expenditures 3,098,449.90 69,863.97 29,892.15 4,902.75 1,953.00 13,893.15 28,125.77 3,247,080.69

Excess (Deficiency) of Revenues Over (Under) Expenditures - - - - - - - -

(Continued)



95

26400 Exhibit E-1c



Total NJ Nonpublic Total

Brought Nursing Services NJ Nonpublic Preschool School Based Target Field Trip Target Field Trip Carried

Forward Aid, (Chapter 226) Security Aid Education Aid Youth Program School #1 School #4 Forward

REVENUES:

Federal Sources 3,198,206.02$ 3,198,206.02$

State Sources 48,874.67 7,662.60$ 1,795.00$ 1,199,062.84$ 269,144.19$ 1,526,539.30

Local Sources 700.00$ 700.00$ 1,400.00

Total Revenues 3,247,080.69 7,662.60 1,795.00 1,199,062.84 269,144.19 700.00 700.00 4,726,145.32

EXPENDITURES:

Instruction:

Salaries of Teachers 697,983.12 655,736.49 1,353,719.61

Purchased Professional and Technical Services 314,597.43 314,597.43


Supplies and Materials 438,022.54 1,795.00 33,004.77 472,822.31


Textbooks 4,902.75 4,902.75

Other Objects 700.00 700.00 1,400.00

Total Instruction 2,711,830.45 - 1,795.00 688,741.26 - 700.00 700.00 3,403,766.71

Support Services:

Personal Services - Salaries 130,222.92 130,222.92

Salaries of Program Directors 57,299.43 76,165.92 133,465.35

Salaries of Secretarial and Clerical Assistants 25,787.79 26,250.00 52,037.79

Other Salaries 72,390.92 72,390.92

Personal Services - Employee Benefits 149,609.86 188,661.98 51,430.81 389,702.65

Purchased Professional and Technical Services 166,093.50 7,662.60 8,496.43 182,252.53

Purchased Educational Services - Contracted Pre-K 229,286.76 229,286.76

Purchased Professional Services 2,760.00 2,760.00

Contracted Services - Transportation 5,088.10 5,088.10

Travel 2,226.83 918.75 3,145.58


Supplies and Materials 17,019.61 518.77 11,910.48 29,448.86

Other Objects 719.50 20,629.63 21,349.13

Total Support Services 528,239.72 7,662.60 - 510,321.58 269,144.19 - - 1,315,368.09



Facilities Acquisition and Construction Services 7,010.52 - - - - 7,010.52

Total Expenditures 3,247,080.69 7,662.60 1,795.00 1,199,062.84 269,144.19 700.00 700.00 4,726,145.32

Excess (Deficiency) of Revenues Over (Under) Expenditures - - - - - - - -

(Continued)



96

26400 Exhibit E-1d



Total Total

Brought NJSBAIG 2011 NJSBAIG 2015 HSA Donation HSA Sch 5 Energy for the Carried

Forward Safety Grant Safety Grant Fund-Day Shirt Leader in Me Program Arts Grant Forward

REVENUES:

Federal Sources 3,198,206.02$ 3,198,206.02$

State Sources 1,526,539.30 1,526,539.30

Local Sources 1,400.00 775.00$ 4,153.67$ 1,000.00$ 3,358.24$ 978.00$ 11,664.91

Total Revenues 4,726,145.32 775.00 4,153.67 1,000.00 3,358.24 978.00 4,736,410.23

EXPENDITURES:

Instruction:

Salaries of Teachers 1,353,719.61 1,353,719.61

Purchased Professional and Technical Services 314,597.43 314,597.43


Supplies and Materials 472,822.31 1,000.00 978.00 474,800.31


Textbooks 4,902.75 4,902.75

Other Objects 1,400.00 1,400.00

Total Instruction 3,403,766.71 - - 1,000.00 - 978.00 3,405,744.71

Support Services:

Personal Services - Salaries 130,222.92 130,222.92

Salaries of Program Directors 133,465.35 133,465.35

Salaries of Secretarial and Clerical Assistants 52,037.79 52,037.79

Other Salaries 72,390.92 72,390.92

Personal Services - Employee Benefits 389,702.65 389,702.65


Purchased Educational Services - Contracted Pre-K 229,286.76 229,286.76

Purchased Professional Services 2,760.00 2,760.00

Contracted Services - Transportation 5,088.10 5,088.10

Travel 3,145.58 3,145.58

Other Purchased Services (400-500 series) 64,217.50 64,217.50

Supplies and Materials 29,448.86 775.00 4,153.67 34,377.53

Other Objects 21,349.13 21,349.13

Total Support Services 1,315,368.09 775.00 4,153.67 - 3,358.24 - 1,323,655.00



Facilities Acquisition and Construction Services 7,010.52 - - - - - 7,010.52

Total Expenditures 4,726,145.32 775.00 4,153.67 1,000.00 3,358.24 978.00 4,736,410.23

Excess (Deficiency) of Revenues Over (Under) Expenditures - - - - - - -

(Continued)



97

26400 Exhibit E-1e

Special Revenue FundCombining Schedule of Program Revenues and Expenditures - Budgetary Basis

Total Make WorldBrought JROTC NJSBAIG 2014 Better FoundationForward Donation - Mayor Safety Grant Field Trip Final

REVENUES:

Federal Sources 3,198,206.02$ 3,198,206.02$ State Sources 1,526,539.30 1,526,539.30 Local Sources 11,664.91 983.83$ 17,162.81$ 488.13$ 30,299.68

Total Revenues 4,736,410.23 983.83 17,162.81 488.13 4,755,045.00

EXPENDITURES:

Instruction: Salaries of Teachers 1,353,719.61 1,353,719.61 Purchased Professional and Technical Services 314,597.43 314,597.43 Other Purchased Services (400-500 series) 1,254,371.61 1,254,371.61 Supplies and Materials 474,800.31 983.83 475,784.14 General Supplies 1,953.00 1,953.00 Textbooks 4,902.75 4,902.75 Other Objects 1,400.00 488.13 1,888.13

Total Instruction 3,405,744.71 983.83 - 488.13 3,407,216.67

Support Services: Personal Services - Salaries 130,222.92 130,222.92 Salaries of Program Directors 133,465.35 133,465.35 Salaries of Secretarial and Clerical Assistants 52,037.79 52,037.79 Other Salaries 72,390.92 72,390.92 Personal Services - Employee Benefits 389,702.65 389,702.65 Purchased Professional and Technical Services 185,610.77 185,610.77 Purchased Educational Services - Contracted Pre-K 229,286.76 229,286.76 Purchased Professional Services 2,760.00 2,760.00 Contracted Services - Transportation 5,088.10 5,088.10 Travel 3,145.58 3,145.58 Other Purchased Services (400-500 series) 64,217.50 64,217.50 Supplies and Materials 34,377.53 17,162.81 51,540.34 Other Objects 21,349.13 21,349.13

Total Support Services 1,323,655.00 - 17,162.81 - 1,340,817.81

Facilities Acquisition and Construction Services: Instructional Equipment 7,010.52 7,010.52

Facilities Acquisition and Construction Services 7,010.52 - - - 7,010.52

Total Expenditures 4,736,410.23 983.83 17,162.81 488.13 4,755,045.00

Excess (Deficiency) of Revenues Over (Under) Expenditures - - - - -



98

26400 Exhibit E-2

Budget Actual Variance

EXPENDITURES:Instruction:

Salaries of Teachers 675,580.00$ 655,736.49$ 19,843.51$


Total instruction 725,580.00 688,741.26 36,838.74

Support Services: Salaries of Program Directors 57,500.00 57,299.43 200.57 Salaries of Secretarial and Clerical Assistants 27,000.00 25,787.79 1,212.21 Other Salaries 1,000.00 1,000.00 Personal Services - Employee Benefits 212,580.00 188,661.98 23,918.02 Purchased Educational Services - Contracted Pre-K 247,000.00 229,286.76 17,713.24 Purchased Professional Services 5,000.00 2,760.00 2,240.00 Contracted Services - Transportation 10,000.00 5,088.10 4,911.90 Travel 3,000.00 918.75 2,081.25 Supplies and Materials 42,787.00 518.77 42,268.23

Total Support Services 605,867.00 510,321.58 95,545.42

Total Expenditures 1,331,447.00$ 1,199,062.84$ 132,384.16$

Total revised 2015-16 Preschool Education Aid Allocation 696,553.00$ Add: Actual Carryover (June 30, 2015) 306,877.64

Add: Budgeted Transfer From General Fund 2015-16 438,356.00

Total Preschool Education Aid Funds Available for the 2015-16 Budget 1,441,786.64 Less: 2015-16 Budgeted Preschool Education Aid (Including

prior year budget carryover) (1,331,447.00)

Available & Unbudgeted Preschool Education Aid Funds as of June 30, 2016 110,339.64

Add: June 30, 2016 Unexpended Preschool Education Aid 132,384.16

2015-16 Carryover - Preschool Education Aid Programs 242,723.80$

2015-16 Preschool Education Aid CarryoverBudgeted for Preschool Programs 2016-2017 110,340.00$

CALCULATION OF BUDGET & CARRYOVER


Preschool - All ProgramsSchedule of Preschool Education Aid Expenditures


Budgetary BasisFor the Fiscal Year Ended June 30, 2016

99

CAPITAL PROJECTS FUND

100

26400 Exhibit F-1

Revised UnexpendedBudgetary Prior Current Appropriations

Project Title/Issue Approval Date Appropriations Years Year June 30, 2016

Middle School Roofing Project June 4, 2010 3,437,500.00$ 1,948,912.40$ 1,488,587.60$

High School Roofing Project June 4, 2010 3,125,000.00 2,536,660.34 588,339.66

High School Window Replacement Project May 23, 2014 1,189,300.00 964,660.00 10,711.00$ 213,929.00

School No. 2 Courtyard Drainage Project May 23, 2014 145,391.00 4,900.00 129,149.10 11,341.90

Middle School Unit Vent Project April 9, 2015 1,754,400.00 70,095.25 765,192.10 919,112.65

Demolition of Building - Blue Anchor April 29, 2015 200,000.00 32,965.75 105,394.29 61,639.96

High School ADA and Security January 16, 2015 740,681.00 26,880.00 288,817.00 424,984.00

Middle School Window and HVAC Replacement January 16, 2015 2,516,430.00 102,477.80 1,835,916.28 578,035.92

School 4 Addition August 26, 2015 10,140,000.00 2,197,087.08 7,942,912.92

High School Front Elevation October 9, 2015 658,750.00 62,604.80 596,145.20

Totals 23,907,452.00$ 5,687,551.54$ 5,394,871.65$ 12,825,028.81$

Reconciliation to Governmental Fund Statement (GAAP): Unexpended Balance as of June 30, 2016 12,825,028.81$ SDA Grant Revenue Not Recognized on GAAP Basis (3,226,125.08)



Expenditures to Date


Capital Projects Fund

Summary Schedule of Project Expenditures

101

26400 Exhibit F-2

Capital Projects FundSummary Schedule of Revenues, Expenditures and Changes in Fund Balance

Revenues and Other Financing Sources Grant Proceeds -$ Local Share 10,817,250.00

Total Revenues 10,817,250.00

Expenditures and Other Financing Uses Architect/Engineer Services 723,046.66 Other Professional Services 140,837.22 Construction Services 4,387,011.07 Land Improvements 97,037.54 Other Objects 46,939.16

Total Expenditures 5,394,871.65

Excess (deficiency) or revenues over (under) expenditures 5,422,378.35

Fund Balance -- Beginning 7,402,650.46

Fund Balance -- Ending 12,825,028.81$

Reconciliation to Governmental Fund Statement (GAAP): Unexpended Balance as of June 30, 2016 12,825,028.81$ SDA Grant Revenue Not Recognized on GAAP Basis (3,226,125.08)


Note: For F-2 Exhibits, SDA Grant awards are recognized as revenue and encumbrances are not included in expenditures.



102

26400 Exhibit F-2a

Capital Projects FundSchedule of Project Revenues, Expenditures, Project Balance, and Project Status

RevisedPrior Current Authorized

Periods Year Totals CostRevenues and Other Financing Sources Grant Proceeds 1,985,111.00$ 1,985,111.00$ 1,985,111.00$ Local Share 1,452,389.00 1,452,389.00 1,452,389.00

Total Revenues 3,437,500.00 - 3,437,500.00 3,437,500.00

Expenditures and Other Financing Uses Other Professional Services 260,483.25 260,483.25 687,500.00 Construction Services 1,688,429.15 1,688,429.15 2,750,000.00

Total Expenditures 1,948,912.40 - 1,948,912.40 3,437,500.00

Excess (deficiency) or revenues over (under) expenditures 1,488,587.60$ -$ 1,488,587.60$ -$

Additional project information: Project Number 5820-030-09-0ZZP Grant Date June 4, 2010 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 3,437,500.00$ Additional Authorized Cost --- Revised Authorized Cost 3,437,500.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 100.00% Original Target Completion Date August 31, 2011 Revised Target Completion Date


Middle School Roofing Project

June 30, 2013

From Inception and for the Fiscal Year Ended June 30, 2016

103

26400 Exhibit F-2b




Total Revenues 3,125,000.00 - 3,125,000.00 3,125,000.00

Expenditures and Other Financing Uses Architect/Engineer Services 4,704.00 4,704.00 4,704.00 Other Professional Services 232,519.50 232,519.50 620,296.00 Construction Services 2,299,436.84 2,299,436.84 2,500,000.00

Total Expenditures 2,536,660.34 - 2,536,660.34 3,125,000.00

Excess (deficiency) or revenues over (under) expenditures 588,339.66$ -$ 588,339.66$ -$

Additional project information: Project Number 5820-010-09-0ZZO Grant Date June 4, 2010 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 3,125,000.00$ Additional Authorized Cost --- Revised Authorized Cost 3,125,000.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 100.00% Original Target Completion Date August 31, 2011 Revised Target Completion Date


High School Roofing Project

March 31, 2013


104

26400 Exhibit F-2c



Periods Year Totals CostRevenues and Other Financing Sources Grant Proceeds 555,391.00$ 555,391.00$ 555,391.00$ Local Share 633,909.00 633,909.00 633,909.00

Total Revenues 1,189,300.00 - 1,189,300.00 1,189,300.00

Expenditures and Other Financing Uses Architect/Engineer Services 8,750.00 5,200.00$ 13,950.00 20,300.00 Other Professional Services 19,000.00 Construction Services 955,910.00 5,511.00 961,421.00 1,045,455.00 Other Objects 104,545.00

Total Expenditures 964,660.00 10,711.00 975,371.00 1,189,300.00

Excess (deficiency) or revenues over (under) expenditures 224,640.00$ (10,711.00)$ 213,929.00$ -$

Encumbered 400.00$ Designated for Subsequent Years Expenditures 213,529.00

213,929.00$

Additional project information: Project Number 5820-010-14-G1NG Grant Date May 23, 2014 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 1,189,300.00$ Additional Authorized Cost --- Revised Authorized Cost 1,189,300.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 99.00% Original Target Completion Date Revised Target Completion Date


High School Window Replacement Project

December 31, 2016December 31, 2014


105

26400 Exhibit F-2d



Periods Year Totals CostRevenues and Other Financing Sources Grant Proceeds 28,159.00$ 28,159.00$ 28,159.00$ Local Share 98,732.00 18,500.00$ 117,232.00 117,232.00

Total Revenues 126,891.00 18,500.00 145,391.00 145,391.00

Expenditures and Other Financing Uses Architect/Engineer Services 4,900.00 3,150.00 8,050.00 13,300.00 Other Professional Services 2,000.00 Construction Services 125,999.10 125,999.10 126,000.00 Other Objects 4,091.00

Total Expenditures 4,900.00 129,149.10 134,049.10 145,391.00


Encumbered 4,200.00$ Designated for Subsequent Years Expenditures 7,141.90

11,341.90$

Additional project information: Project Number 5820-040-14-G1NJ Grant Date May 23, 2014 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 60,300.00$ Additional Authorized Cost 85,091.00$ Revised Authorized Cost 145,391.00$

Percentage Increase over Original Authorized Cost 141% Percentage Completion 96% Original Target Completion Date August 31, 2015 Revised Target Completion Date


School No. 2 Courtyard Drainage Project

December 31, 2016


106

26400 Exhibit F-2e



Periods Year Totals CostRevenues and Other Financing Sources Local Share 1,754,400.00$ 1,754,400.00$ 1,754,400.00$

Total Revenues 1,754,400.00 - 1,754,400.00 1,754,400.00

Expenditures and Other Financing Uses Architect/Engineer Services 70,095.25 2,607.10$ 72,702.35 109,600.00 Other Professional Services 44,800.00 Construction Services 762,585.00 762,585.00 1,523,810.00 Other Objects 76,190.00

Total Expenditures 70,095.25 765,192.10 835,287.35 1,754,400.00

Excess (deficiency) or revenues over (under) expenditures 1,684,304.75$ (765,192.10)$ 919,112.65$ -$


919,112.65$

Additional project information: Project Number 5820-020-14-3000 Grant Date April 9, 2015 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 1,754,400.00$ Additional Authorized Cost --- Revised Authorized Cost 1,754,400.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 95% Original Target Completion Date August 31, 2015 Revised Target Completion Date


Middle School Unit Vent Project

December 31, 2016


107

26400 Exhibit F-2f



Periods Year Totals CostRevenues and Other Financing Sources Local Share 200,000.00$ 200,000.00$ 200,000.00$

Total Revenues 200,000.00 - 200,000.00 200,000.00

Expenditures and Other Financing Uses Architect/Engineer Services 32,143.25 8,356.75$ 40,500.00 47,450.00 Land Improvements 97,037.54 97,037.54 151,727.50 Other Objects 822.50 822.50 822.50



Additional project information: Project Number 5820-X01-14-1000 Grant Date April 29, 2015 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 200,000.00$ Additional Authorized Cost --- Revised Authorized Cost 200,000.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 99% Original Target Completion Date June 30, 2016 Revised Target Completion Date


Demolition of Building - Blue Anchor

September 30, 2016


108

26400 Exhibit F-2g



Periods Year Totals CostRevenues and Other Financing Sources Grant Proceeds 345,891.00$ 345,891.00$ 345,891.00$ Local Share 394,790.00 394,790.00 394,790.00

Total Revenues 740,681.00 - 740,681.00 740,681.00

Expenditures and Other Financing Uses Architect/Engineer Services 26,880.00 6,720.00$ 33,600.00 72,450.00 Other Professional Services 52,059.00 Construction Services 282,097.00 282,097.00 611,172.00 Other Objects 5,000.00




424,984.00$

Additional project information: Project Number 5820-010-14-G1NH Grant Date January 16, 2015 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 740,681.00$ Additional Authorized Cost --- Revised Authorized Cost 740,681.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 52% Original Target Completion Date Revised Target Completion Date


High School ADA and Security

June 30, 2017June 30, 2016


109

26400 Exhibit F-2h




Total Revenues 2,516,430.00 - 2,516,430.00 2,516,430.00

Expenditures and Other Financing Uses Architect/Engineer Services 88,908.80 39,626.76$ 128,535.56 174,733.00 Other Professional Services 10,205.00 10,205.00 136,509.00 Construction Services 13,569.00 1,785,766.85 1,799,335.85 2,200,188.00 Other Objects 317.67 317.67 5,000.00

Total Expenditures 102,477.80 1,835,916.28 1,938,394.08 2,516,430.00

Excess (deficiency) or revenues over (under) expenditures 2,413,952.20$ (1,835,916.28)$ 578,035.92$ -$


578,035.92$

Additional project information: Project Number 5820-020-14-G1NI Grant Date January 16, 2015 Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 2,516,430.00$ Additional Authorized Cost --- Revised Authorized Cost 2,516,430.00$



Middle School Window Replacement and HVAC Replacement

June 30, 2017


110

26400 Exhibit F-2i



Periods Year Totals CostRevenues and Other Financing Sources Local Share 10,140,000.00$ 10,140,000.00$ 10,140,000.00$

Total Revenues - 10,140,000.00 10,140,000.00 10,140,000.00

Expenditures and Other Financing Uses Legal Services 42,250.00 Architect/Engineer Services 638,996.05 638,996.05 845,000.00 Other Professional Services 126,536.22 126,536.22 380,250.00 Construction Services 1,385,401.32 1,385,401.32 8,450,000.00 Other Objects 46,153.49 46,153.49 422,500.00

Total Expenditures - 2,197,087.08 2,197,087.08 10,140,000.00

Excess (deficiency) or revenues over (under) expenditures -$ 7,942,912.92$ 7,942,912.92$ -$

Encumbered 4,970,499.92$ Designated for Subsequent Years Expenditures 2,972,413.00

7,942,912.92$

Additional project information: Project Number 5820-060-15-1000 Grant Date N/A Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 10,140,000.00$ Additional Authorized Cost --- Revised Authorized Cost 10,140,000.00$

Percentage Increase over Original Authorized Cost --- Percentage Completion 22% Original Target Completion Date April 30, 2017 Revised Target Completion Date


School 4 Addition

N/A


111

26400 Exhibit F-2j



Periods Year Totals CostRevenues and Other Financing Sources Local Share 658,750.00$ 658,750.00$ 658,750.00$

Total Revenues - 658,750.00 658,750.00 658,750.00

Expenditures and Other Financing Uses Legal Services 5,270.00 Architect/Engineer Services 18,390.00 18,390.00 52,700.00 Other Professional Services 4,096.00 4,096.00 21,080.00 Construction Services 39,650.80 39,650.80 527,000.00 Other Objects 468.00 468.00 52,700.00

Total Expenditures - 62,604.80 62,604.80 658,750.00

Excess (deficiency) or revenues over (under) expenditures -$ 596,145.20$ 596,145.20$ -$


596,145.20$

Additional project information: Project Number 5820-010-15-2000 Grant Date N/A Bond Authorization Date N/A Bonds Authorized N/A Bonds Issued N/A Original Authorized Cost 658,750.00$ Additional Authorized Cost --- Revised Authorized Cost 658,750.00$



High School Front Elevation

N/A


112

PROPRIETARY FUNDS

113

26400 Exhibit G-1

Food Before-AfterService School Program Total

ASSETS:

Current Assets: Cash and Cash Equivalents 738,095.90$ 985,317.30$ 1,723,413.20$ Accounts Receivable: State 3,707.47 3,707.47 Federal 114,773.92 114,773.92 Other 16,024.81 74,288.10 90,312.91 Interfund Accounts Receivable:

Due Before and After School 6,029.60 6,029.60 Due Students, Net 15,333.71 15,333.71 Prepaid Expenses 5,116.25 5,116.25 Inventories 92,666.91 92,666.91

Total Current Assets 986,632.32 1,064,721.65 2,051,353.97

Noncurrent Assets: Equipment 972,886.38 972,886.38 Less Accumulated Depreciation (868,656.00) (868,656.00)

Total Noncurrent Assets 104,230.38 - 104,230.38

Total Assets 1,090,862.70 1,064,721.65 2,155,584.35

LIABILITIES:

Current Liabilities: Interfund Accounts Payable: Due General Fund 56,352.13 26,693.20 83,045.33 Due Food Service 6,029.60 6,029.60 Accounts Payable 160,005.55 72,141.02 232,146.57 Unearned Revenue 44,223.04 44,223.04

Total Liabilities 216,357.68 149,086.86 365,444.54

NET POSITION:

Net Investment in Capital Assets 104,230.38 104,230.38Unrestricted 770,274.64 915,634.79 1,685,909.43

Total Net Position 874,505.02$ 915,634.79$ 1,790,139.81$

June 30, 2016

TOWNSHIP OF WINSLOW SCHOOL DISTRICTProprietary Fund

Combining Statement of Net Position

114

26400 Exhibit G-2

Food Before-AfterService School Program Total

OPERATING REVENUES:

Charges for Services: Daily Sales - Reimbursable Programs 397,475.10$ 397,475.10$ Daily Sales - Non-Reimbursable Programs 420,342.24 420,342.24 Other Sales 51,199.90 51,199.90 Tuition 942,518.94$ 942,518.94

Total Operating Revenues 869,017.24 942,518.94 1,811,536.18

OPERATING EXPENSES:

Management Fees 169,054.84 169,054.84Salaries 757,448.27 73,540.93 830,989.20Employee Benefits 224,709.43 27,220.54 251,929.97Other Purchased Services 60,107.89 512,542.16 572,650.05General Supplies 142,074.50 14,886.68 156,961.18Depreciation 23,478.00 23,478.00Cleaning, Repairs and Maintenance 33,307.02 18,000.00 51,307.02Insurance 32,729.30 32,729.30Cost of Sales - Reimbursable Programs 893,496.95 893,496.95Cost of Sales - Non-Reimbursable Programs 175,407.17 175,407.17

Total Operating Expenses 2,511,813.37 646,190.31 3,158,003.68

Operating Income / (Loss) (1,642,796.13) 296,328.63 (1,346,467.50)

NONOPERATING REVENUES (EXPENSES):

State Sources: State School Lunch Program 27,609.66 27,609.66Federal Sources: National School Lunch Program 1,255,454.61 1,255,454.61 National School Breakfast Program 287,057.41 287,057.41 Summer Food Service Program 54,666.92 54,666.92 Food Distribution Program 190,507.28 190,507.28Gain on Disposal of Equipment 11,442.27 11,442.27

Total Nonoperating Revenues (Expenses) 1,826,738.15 - 1,826,738.15

Change in Net Position 183,942.02 296,328.63 480,270.65

Net Position -- July 1 690,563.00 669,584.71 1,360,147.71

Prior Period Adjustment - (50,278.55) (50,278.55)

Net Position -- July 1 (Restated) 690,563.00 619,306.16 1,309,869.16

Net Position -- June 30 874,505.02$ 915,634.79$ 1,790,139.81$

For the Fiscal Year Ended June 30, 2016Combining Statement of Revenues, Expenses and Changes in Fund Net Position

Proprietary FundTOWNSHIP OF WINSLOW SCHOOL DISTRICT

115

26400 Exhibit G-3

Proprietary Fund

Combining Statement of Cash Flows

Food Before-After

Service School Program Totals

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from Customers 850,627.02$ 919,880.94$ 1,770,507.96$

Payments to Employees (757,448.27) (46,847.73) (804,296.00)

Payments for Employee Benefits (224,709.43) (27,220.54) (251,929.97)

Payments to Suppliers (1,689,171.47) (539,223.63) (2,228,395.10)

Net Cash Provided by (used for) Operating Activities (1,820,702.15) 306,589.04 (1,514,113.11)

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

State Sources 26,554.95 26,554.95

Federal Sources 1,785,163.25 1,785,163.25

Net Cash Provided by (used for) Non-Capital Financing Activities 1,811,718.20 - 1,811,718.20

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Gain on Disposal of Equipment 11,442.27 11,442.27

Purchases of Capital Assets (7,600.00) (7,600.00)

Net Cash Provided by (used for)

Capital and Related Financing Activities 3,842.27 - 3,842.27

Net Increase (Decrease) in Cash and Cash Equivalents (5,141.68) 306,589.04 301,447.36

Cash and Cash Equivalents -- July 1 743,237.58 678,728.26 1,421,965.84

Cash and Equivalents -- June 30 738,095.90$ 985,317.30$ 1,723,413.20$

Reconciliation of Operating Income (Loss) to Net Cash Provided by

(Used in) Operating Activities:

Operating Income (Loss) (1,642,796.13)$ 296,328.63$ (1,346,467.50)$

Adjustments to Reconcile Operating Income (Loss) to Net Cash

Provided by (used for) Operating Activities:

Depreciation 23,478.00 23,478.00

(Increase) Decrease in Accounts Receivable Other (8,520.14) (18,032.09) (26,552.23)

(Increase) Decrease in Interfunds Receivable (4,063.60) (4,063.60)

(Increase) Decrease in Due Students, Net (5,806.48) (5,806.48)

(Increase) Decrease in Inventories (40,645.30) (40,645.30)

(Increase) Decrease in Prepaid Expenses 478.34 478.34

Increase (Decrease) in Accounts Payable (192,993.95) 36,572.93 (156,421.02)

Increase (Decrease) in Interfund Payable 50,645.45 (4,152.86) 46,492.59

Increase (Decrease) in Other Current Liabilities (4,605.91) (4,605.91)

Total Adjustments (177,906.02) 10,260.41 (167,645.61)

Net Cash Provided by (used for) Operating Activities (1,820,702.15)$ 306,589.04$ (1,514,113.11)$



116

FIDUCIARY FUNDS

117

26400 Exhibit H-1

Fiduciary FundsCombining Statement of Fiduciary Net Position

Agency Funds

StudentActivity Payroll Total

ASSETS:

Cash and Cash Equivalents 134,861.55$ 472,541.75$ 607,403.30$ Accounts Receivable 662.85 662.85 Interfund Accounts Receivable: Due General Fund 50,977.57 50,977.57

Total Assets 134,861.55$ 524,182.17$ 659,043.72$

LIABILITIES:

Payable to Student Groups 134,861.55$ 134,861.55$ Payroll Deductions and Withholdings 524,182.17$ 524,182.17

Total Liabilities 134,861.55$ 524,182.17$ 659,043.72$


June 30, 2016

118

26400 Exhibit H-3

Fiduciary FundsStudent Activity Agency Fund Schedule of Receipts and Disbursements

Balance Cash Cash BalanceJune 30, 2015 Receipts Reallocation Disbursements June 30, 2016

ELEMENTARY SCHOOLS:

School No. 1 2,424.37$ 5,767.54$ 6,582.00$ 1,609.91$ School No. 2 7,420.50 6,382.50 8,240.95 5,562.05 School No. 3 3,101.38 4,675.07 4,157.00 3,619.45 School No. 4 5,205.11 8,023.00 10,232.87 2,995.24 School No. 5 5,065.52 6,574.74 8,225.47 3,414.79 School No. 6 7,994.58 6,346.57 7,819.75 6,521.40

Total Elementary Schools 31,211.46 37,769.42 - 45,258.04 23,722.84

JUNIOR HIGH SCHOOL:

Winslow Township Middle 18,024.68 74,354.52 (1,099.15)$ 77,026.37 14,253.68

SENIOR HIGH SCHOOL:

Winslow Township High 118,540.46 246,197.09 1,099.15 268,951.67 96,885.03

Total All Schools 167,776.60$ 358,321.03$ -$ 391,236.08$ 134,861.55$



119

26400 Exhibit H-4

Fiduciary FundsPayroll Agency Fund Schedule of Receipts and Disbursements

Balance BalanceJune 30, 2015 Additions Deletions June 30, 2016

ASSETS:

Cash and Cash Equivalents 577,746.66$ 53,023,246.62$ 53,128,451.53$ 472,541.75$ Accounts Receivable 257.58 2,159.51 1,754.24 662.85 Interfund Accounts Receivable: Due General Fund 50,132.42 52,846.37 52,001.22 50,977.57

Total Assets 628,136.66$ 53,078,252.50$ 53,182,206.99$ 524,182.17$

LIABILITIES:

Payroll Deductions and Withholdings 620,424.45$ 24,627,909.83$ 24,724,152.11$ 524,182.17$ Net Payroll 28,419,346.33 28,419,346.33 Interfund Accounts Payable: Due General Fund 7,712.21 30,996.34 38,708.55

Total Liabilities 628,136.66$ 53,078,252.50$ 53,182,206.99$ 524,182.17$



120

LONG-TERM DEBT

121

26400 Exhibit I-1

Date of Amount of Interest Balance BalanceIssue Issue Date Amount Rate June 30, 2015 Retired June 30, 2016

Refunding Bonds 03/06/03 2,210,000.00$ 07/01/16 60,000.00$ 5.375%07/01/17 65,000.00 5.375%07/01/18 70,000.00 5.375%07/01/19 75,000.00 5.375%07/01/20 80,000.00 5.375% 535,000.00$ 185,000.00$ 350,000.00$

School District Bonds 06/18/08 3,300,000.00 01/15/17 365,000.00 4.000%01/15/18 380,000.00 4.000%01/15/19 400,000.00 4.000% 1,495,000.00 350,000.00 1,145,000.00

Refunding Bonds 05/16/13 13,230,000.00 08/01/16 2,175,000.00 3.000%08/01/17 2,210,000.00 3.000%08/01/18 2,250,000.00 4.000%08/01/19 2,280,000.00 4.000% 11,050,000.00 2,135,000.00 8,915,000.00

13,080,000.00$ 2,670,000.00$ 10,410,000.00$

Budget Appropriation 2,670,000.00$


IssueAnnual Maturities

For the Fiscal Year Ended June 30, 2016Schedule of Serial Bonds

Debt Service Fund

122

26400 Exhibit I-3

Debt Service FundBudgetary Comparison Schedule

VarianceOriginal Final Positive (Negative)Budget Budget Actual Final to Actual

REVENUES:

Local Sources:Local Tax Levy 1,492,682.00$ 1,492,682.00$ 1,492,682.00$

Debt Service Aid Type II 1,429,048.00 1,429,048.00 1,429,048.00

Total Revenues 2,921,730.00 2,921,730.00 2,921,730.00 -

EXPENDITURES:

Regular Debt Service:Interest on Early Retirement of Bonds 23,785.00 23,785.00 23,784.38 0.62$ Redemption of Principal - Early Retirement Bonds 185,000.00 185,000.00 185,000.00Interest on Bonds 404,575.00 404,575.00 404,575.00 Redemption of Principal 2,485,000.00 2,485,000.00 2,485,000.00

Total Expenditures 3,098,360.00 3,098,360.00 3,098,359.38 0.62

Excess (Deficiency) of Revenues Over (Under) Expenditures (176,630.00) (176,630.00) (176,629.38) 0.62

Fund Balance, July 1 176,630.00 176,630.00 176,630.66 0.66

Fund Balance, June 30 -$ -$ 1.28$ 1.28$

Recapitulation:Restricted Fund Balance:

Designated for Subsequent Year's Expenditures 1.00$ Restricted Fund Balance 0.28

1.28$



123

STATISTICAL SECTION

124

Financial Trends Information

Financial trends information is intended to assist the user in understanding and assessinghow the School District's financial position has changed over time. Please refer to thefollowing exhibits for a historical view of the School District's financial performance.

125

26400 Exhibit J-1

2016 2015 * 2014 2013 2012 2011 2010 2009 2008 2007

Governmental ActivitiesNet Investment in Capital Assets 69,508,440.79$ 62,775,629.84$ 60,938,879.89$ 57,873,689.26$ 58,362,789.45$ 55,977,775.46$ 54,282,107.63$ 45,922,105.62$ 46,532,051.89$ 45,706,508.61$ Restricted 31,465,711.60 27,578,078.29 21,753,203.38 18,369,794.95 12,749,776.42 9,903,343.80 3,741,760.92 3,416,752.94 974,366.14 2,808,971.93 Unrestricted (17,619,204.87) (17,338,164.40) (4,879,224.20) (4,933,662.77) (4,539,947.74) (4,909,365.99) (1,451,188.71) (5,863,429.62) (4,814,192.09) (5,217,258.60)

Total Governmental Activities Net Position 83,354,947.52$ 73,015,543.73$ 77,812,859.07$ 71,309,821.44$ 66,572,618.13$ 60,971,753.27$ 56,572,679.84$ 43,475,428.94$ 42,692,225.94$ 43,298,221.94$

Business-type ActivitiesNet Investment in Capital Assets 104,230.38$ 120,108.38$ 149,392.80$ 108,521.00$ 146,088.00$ 185,420.00$ 224,767.00$ 229,121.54$ 279,210.50$ 336,717.41$ Restricted 156.90 156.90 23,775.29 33,089.95 Unrestricted 1,685,909.43 1,240,039.33 709,636.17 (870,547.39) (1,141,509.18) (1,167,604.56) (629,862.48) (278,269.61) (108,454.46) (16,660.24)

Total Business-type Activities Net Position 1,790,139.81$ 1,360,147.71$ 859,028.97$ (761,869.49)$ (995,264.28)$ (958,409.27)$ (372,005.53)$ (49,148.07)$ 170,756.04$ 320,057.17$

District-wideNet Investment in Capital Assets 69,612,671.17$ 62,895,738.22$ 61,088,272.69$ 57,982,210.26$ 58,508,877.45$ 56,163,195.46$ 54,506,874.63$ 46,151,227.16$ 46,811,262.39$ 46,043,226.02$ Restricted 31,465,711.60 27,578,078.29 21,753,203.38 18,369,951.85 12,749,933.32 9,927,119.09 3,774,850.87 3,416,752.94 974,366.14 2,808,971.93 Unrestricted (15,933,295.44) (16,098,125.07) (4,169,588.03) (5,804,210.16) (5,681,456.92) (6,076,970.55) (2,081,051.19) (6,141,699.23) (4,922,646.55) (5,233,918.84)

Total District-wide Net Position 85,145,087.33$ 74,375,691.44$ 78,671,888.04$ 70,547,951.95$ 65,577,353.85$ 60,013,344.00$ 56,200,674.31$ 43,426,280.87$ 42,862,981.98$ 43,618,279.11$

In accordance with GASBS No. 65, effective for the fiscal year ended June 30, 2013, the method to expense debt issuance costs was changed.

* For the fiscal year ended June 30, 2015, the School District adopted GASBS No's. 68 and 71, which required the School District to record its proportionate share of the net pension liability and related deferred outflows and inflows of resources in the government-wide financial statements. Balances prior to June 30, 2015 are shown as originally reported and have not been restated for this adoption.

Source: Comprehensive Annual Financial Report, Exhibit A-1.

TOWNSHIP OF WINSLOW SCHOOL DISTRICTNet Position by Component

Last Ten Fiscal Years (accrual basis of accounting)Unaudited


126

26400 Exhibit J-2

2016 2015 * 2014 2013 2012 2011 2010 2009 2008 2007

Expenses


Instruction

Regular 28,195,540.58$ 27,848,036.61$ 28,524,313.34$ 27,332,366.77$ 27,488,961.31$ 27,676,629.47$ 28,350,762.32$ 27,567,005.35$ 31,473,028.63$ 26,541,389.86$

Special Education 9,317,846.55 9,215,623.75 8,749,824.47 8,097,470.92 8,398,810.52 7,880,606.26 7,941,070.56 7,804,375.22 7,421,316.58 6,793,569.11

Other Special Education 1,780,453.16 1,766,257.81 1,758,226.22 1,505,175.22 1,461,357.72 1,482,708.53 1,578,151.32 3,795,358.69 2,490,034.07 2,975,299.29

Support Services:

Tuition 6,552,692.18 6,564,837.74 5,785,988.45 5,450,112.82 7,835,984.90 7,405,572.45 6,904,502.87 5,982,316.31 6,284,524.65 6,020,297.11

Student & Instruction Related Services 10,567,715.15 10,427,942.03 9,640,728.88 8,654,668.21 8,304,507.34 7,674,157.27 8,709,669.80 8,061,160.17 7,902,090.75 7,318,921.52

General Administrative Services 951,310.95 997,015.57 1,246,442.05 1,105,009.08 1,069,234.74 905,435.78 976,742.39 996,866.43 1,353,291.98 1,019,805.95

School Administrative Services 3,408,836.89 3,442,819.44 3,282,036.42 3,207,211.81 3,351,815.39 2,980,959.08 3,255,196.43 3,190,083.60 3,271,112.88 3,003,843.19

Plant Operations and Maintenance 8,526,262.62 8,768,749.76 10,753,609.73 8,006,722.66 8,883,535.59 8,023,976.90 8,609,964.73 9,127,106.49 8,933,018.40 8,579,577.71

Central Services 1,000,939.29 1,087,313.94 1,000,371.40 1,136,397.26 1,228,499.03 1,421,471.08 1,047,032.32 1,232,768.52 1,053,615.04 1,033,011.57

Administrative Information Technology 846,775.03 742,703.54 565,957.27 512,366.21 558,427.86 1,289,677.10 862,319.26 399,658.65 384,062.28 371,678.05

Pupil Transportation 7,656,985.56 7,487,815.26 7,621,291.62 7,482,557.54 7,415,441.28 7,527,174.73 6,850,045.15 6,561,727.17 6,785,610.04 5,924,609.56

Other Undistributed Costs 39,497.47

Unallocated Benefits 33,375,249.95 28,477,070.40 18,705,328.76 20,149,815.22 19,491,803.07 19,386,242.43 20,561,941.47 20,858,560.95 20,452,892.93 17,961,240.68

Special Schools 1,210.59

Charter Schools 472,183.00 475,013.00 674,253.00 6,780,574.00 5,214,298.00 3,595,940.00 2,480,868.00 125,572.00 105,444.00 22,412.00

Debt Service (Principal plus interest and other changes) 354,076.72 470,341.31 287,449.34 963,172.09 1,005,388.36 1,099,982.10 1,368,033.63 1,182,908.34 1,270,723.58 1,335,288.24

Building Depreciation 553,245.00 550,795.00 398,183.00 188,752.00 185,348.00 221,520.57 300,000.00 1,811,125.24 989,027.89 1,099,858.19

Amortization of Debt Issuance Costs 235,974.19 23,621.26 23,621.26 24,246.64 31,125.72 27,100.72 32,523.35

Total Governmental Activities Expenses 113,560,112.63 108,322,335.16 98,994,003.95 100,808,346.00 101,917,034.37 98,595,675.01 99,860,044.36 98,727,718.85 100,196,894.42 90,034,535.97

Business-type Activities:

Food Service 2,511,813.37 2,266,034.24 2,191,885.87 2,120,806.75 2,188,642.87 2,180,373.73 2,561,910.20 2,658,224.60 2,465,378.42 2,698,598.37

Regional Day School 2,913.00 18,779.54 1,340,021.66 2,185,493.97 2,396,949.34 2,312,390.77 2,363,869.14

Before-After School Program 646,190.31 610,840.61 533,249.53 608,425.58 712,167.13 574,549.04 520,053.17 527,667.60 560,377.38 531,451.93

Total Business-type Activities Expenses 3,158,003.68 2,876,874.85 2,725,135.40 2,732,145.33 2,919,589.54 4,094,944.43 5,267,457.34 5,582,841.54 5,338,146.57 5,593,919.44

Total District Expenses 116,718,116.31$ 111,199,210.01$ 101,719,139.35$ 103,540,491.33$ 104,836,623.91$ 102,690,619.44$ 105,127,501.70$ 104,310,560.39$ 105,535,040.99$ 95,628,455.41$

Program Revenues


Charges for Services:

Regular Instruction 3,637,579.52$ 3,594,001.10$ 3,106,502.56$ 2,987,298.53$ 3,120,399.54$ 2,635,998.78$ 2,772,743.00$ 1,538,316.73$ 1,764,243.86$ 1,608,845.86$

Student Transportation 168,988.75 129,481.25 245,750.00 3,251,398.91 25,000.00 30,000.00 30,000.00

Operating Grants and Contributions:

Regular Instruction 3,406,466.67

Student and Instruction Related Services 1,343,332.35

Interest on Long Term Debt 1,429,048.00

On-behalf T.P.A.F Pension Contributions 17,797,873.00 13,593,524.00 4,045,391.00 5,372,494.00 3,890,027.00 2,827,858.00 2,805,738.00 2,541,035.00 4,681,046.00 4,597,111.00

Reimbursed T.P.A.F Social Security Contributions 2,875,504.70 2,927,848.45 2,777,389.76 2,953,856.09 2,655,208.14 2,841,781.89 3,081,906.00 3,061,902.47 3,222,160.86 2,777,870.86

Total Governmental Activities Program Revenues 30,658,792.99 20,244,854.80 10,175,033.32 11,313,648.62 9,665,634.68 8,305,638.67 11,911,785.91 7,166,254.20 9,697,450.72 9,013,827.72

Business-type activities:

Charges for services:

Food service 869,017.24 788,782.23 782,089.56 784,701.75 816,153.82 874,774.82 1,041,515.51 1,204,650.70 1,154,468.55 1,256,627.95

Regional Day School 746,531.23 1,906,676.49 2,208,032.16 2,159,056.89 1,926,442.06

Before-After School Program 942,518.94 872,510.26 718,078.13 764,929.90 730,244.97 643,987.47 505,266.22 518,957.39 567,476.89 541,651.34

Operating Grants and Contributions:

Food service 1,815,295.88 1,717,911.10 1,643,230.17 1,323,655.80 1,343,058.94 1,239,168.78 1,452,259.64 1,488,084.17 1,304,925.25 1,241,328.54

Total Business-type Activities Program Revenues 3,626,832.06 3,379,203.59 3,143,397.86 2,873,287.45 2,889,457.73 3,504,462.30 4,905,717.86 5,419,724.42 5,185,927.58 4,966,049.89

Total District Program Revenues 34,285,625.05$ 23,624,058.39$ 13,318,431.18$ 14,186,936.07$ 12,555,092.41$ 11,810,100.97$ 16,817,503.77$ 12,585,978.62$ 14,883,378.30$ 13,979,877.61$

Net (Expense)/Revenue

Governmental Activities 82,901,319.64$ 88,077,480.36$ 88,818,970.63$ 89,494,697.38$ 92,251,399.69$ 90,290,036.34$ 87,948,258.45$ 91,561,464.65$ 90,499,443.70$ 81,020,708.25$

Business-type Activities (468,828.38) (502,328.74) (418,262.46) (141,142.12) 30,131.81 590,482.13 361,739.48 163,117.12 152,218.99 627,869.55

Total District-wide Net (Expense) Revenue 82,432,491.26$ 87,575,151.62$ 88,400,708.17$ 89,353,555.26$ 92,281,531.50$ 90,880,518.47$ 88,309,997.93$ 91,724,581.77$ 90,651,662.69$ 81,648,577.80$

(Continued)


Changes in Net Position

Last Ten Fiscal Years (accrual basis of accounting)

Unaudited


127

26400 Exhibit J-2

2016 2015 * 2014 2013 2012 2011 2010 2009 2008 2007


Changes in Net Position

Last Ten Fiscal Years (accrual basis of accounting)

Unaudited


General Revenues and Other Changes in Net Position


Taxes:

Property Taxes, Levied for General Purposes 45,799,758.00$ 44,901,724.00$ 44,021,298.00$ 43,158,135.00$ 42,311,897.00$ 42,311,897.02$ 40,876,097.04$ 39,803,697.00$ 39,942,508.00$ 35,994,372.00$

Taxes Levied for Debt Service 1,492,682.00 1,765,837.00 1,729,671.00 1,734,795.00 1,746,925.00 1,715,278.00 1,518,682.00 1,409,596.00 1,072,406.00 1,543,889.00

Federal and State Aid not Restricted 44,756,882.75 44,990,360.31 45,252,763.99 44,206,214.16 46,624,667.07 43,775,075.81 50,809,470.25 44,655,531.51 38,896,199.98 36,705,412.56

Federal and State Aid Restricted 631,650.00 5,240,925.50 5,221,184.24 5,535,842.08 5,831,727.51 7,604,589.51 6,844,299.33 6,262,318.91 10,186,344.57 8,874,221.40

Miscellaneous Income 538,628.99 263,874.73 323,617.12 835,859.85 266,662.17 309,759.13 1,058,464.87 259,337.57 364,983.11 472,519.77

Transfer to Food Service Fund - Board Contribution (90,222.80)

Adjustment for Fixed Assets 1,079,816.80 249,280.85 (61,504.14)

Gain/Loss on Disposal of Capital Assets 21,120.99 (4,500.00) (12,544.92) (22,678.00) 76.95 (434,814.56) (251,542.55)

Cancellation of Prior Year Accounts Receivable (9,431.00) (53,950.00) (11,775.29) (134,179.40)

Cancellation of Prior Year Accounts Payable 10,764.84

Refund of Prior Year Tuition (34,115.00)

Refund of Prior Year Payment for RDS Compensated Absences 5,680.39

Adjustment for Fixed Assets (1,213,981.17) (1,142,489.83)

Lawsuit Settlement (600,000.00)

Allowance for Uncollectible Interfund from Regional Day School (1,222,820.55)

Total Governmental Activities 93,240,722.73 97,158,221.54 95,322,008.26 94,231,900.69 97,852,264.55 94,689,109.77 101,045,509.35 92,344,667.65 89,893,447.70 82,738,872.18

Business-type Activities

Cancelation of Prior Year Accounts Receivable (6,723.20) (39,497.47) (97,054.66) (3,842.84)

Miscellaneous Income 8.07 373.88 1,656.56 1,597.37 6,760.70 14,186.67

Transfer In 90,222.80

Transfer from General Fund to Cover Deficit 39,497.47 38,670.31

Adjustment for Fixed Assets 37,225.46

Adjustment for Compensated Absences 2,021.80

Bad Debt Expense (6,699.00)

Refund of a Prior Year Expenditure 10,403.51

Cancellation of Interfund and Payables 1,209,035.00

Gain/Loss on Disposal of Capital Assets 11,442.27 (1,210.00) (6,399.00) (47,012.02)

Total Business-type Activities 11,442.27 (1,210.00) 1,202,636.00 92,252.67 (6,723.20) 4,078.39 38,882.02 (56,786.98) 2,917.86 (32,825.35)

Total District-wide 93,252,165.00$ 97,157,011.54$ 96,524,644.26$ 94,324,153.36$ 97,845,541.35$ 94,693,188.16$ 101,084,391.37$ 92,287,880.67$ 89,896,365.56$ 82,706,046.83$

Change in Net Position

Governmental Activities 10,339,403.09$ 9,080,741.18$ 6,503,037.63$ 4,737,203.31$ 5,600,864.86$ 4,399,073.43$ 13,097,250.90$ 783,203.00$ (605,996.00)$ 1,718,163.93$

Business-type Activities 480,270.65 501,118.74 1,620,898.46 233,394.79 (36,855.01) (586,403.74) (322,857.46) (219,904.10) (149,301.13) (660,694.90)

Total District 10,819,673.74$ 9,581,859.92$ 8,123,936.09$ 4,970,598.10$ 5,564,009.85$ 3,812,669.69$ 12,774,393.44$ 563,298.90$ (755,297.13)$ 1,057,469.03$

In accordance with GASBS No. 65, effective for the fiscal year ended June 30, 2013, the method to expense debt issuance costs was changed.

* For the fiscal year ended June 30, 2015, the School District adopted GASBS No's 68 and 71, which required the School District to record its proportionate share of the net pension liability and related deferred outflows and inflows of resources

in the government-wide financial statements. Balances prior to June 30, 2015 are shown as originally reported and have not been restated for this adoption.

Source: Comprehensive Annual Financial Report, Exhibit A-2.

128

26400 Exhibit J-3

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

General FundRestricted 18,766,816.14$ 21,827,125.10$ 16,205,239.97$ 9,808,746.24$ 4,814,315.75$ 704,162.15$ Assigned 3,099,990.45 2,022,437.33 3,002,465.11 6,484,118.33 5,727,680.93 6,723,708.24 Unassigned (2,154,358.86) (2,350,885.31) (2,260,316.52) (2,138,713.93) (1,967,717.87) (1,907,093.67) Reserved 3,564,431.16$ 3,104,292.91$ 679,602.77$ 2,531,527.01$ Unreserved (2,044,648.10) (1,887,926.88) (403,270.42) (979,573.30)

Total General Fund 19,712,447.73$ 21,498,677.12$ 16,947,388.56$ 14,154,150.64$ 8,574,278.81$ 5,520,776.72$ 1,519,783.06$ 1,216,366.03$ 276,332.35$ 1,551,953.71$

All Other Governmental FundsRestricted, Reported in:

Capital Projects Fund 9,598,903.73$ 3,551,885.20$ 2,368,867.26$ 2,076,927.26$ 2,081,631.26$ 2,325,703.66$ Debt Service Fund 1.28 176,630.66 176,630.04 1.00 1.62 1.62

Assigned, Reported in:Debt Service Fund 1.00 2.12 1.00

Unassigned, Reported in:Special Revenue Fund (69,655.30) (38,480.90) (27,764.70) (23,255.40) (36,332.40) (164,427.40)

Unreserved, Reported in:Special Revenue Fund (164,427.40)$ (160,455.00)$ (284,859.54)$ (235,366.55)$ Capital Projects Fund 3,901,803.13 114,822.38 66,000.00 21,580.83 Debt Service Fund 450.62 450.14 365.01 790.82

Total All Other Governmental Funds 9,529,249.71$ 3,690,034.96$ 2,517,733.60$ 2,053,674.98$ 2,045,301.48$ 2,161,277.88$ 3,737,826.35$ (45,182.48)$ (218,494.53)$ (212,994.90)$

In accordance with GASBS No. 54, effective for the fiscal year ended June 30, 2011, the description and terminology utilized to identify Fund Balance was changed.

Source: District Records

TOWNSHIP OF WINSLOW SCHOOL DISTRICTFund Balances, Governmental Funds

Last Ten Fiscal Years (modified accrual basis of accounting)Unaudited


129

26400 Exhibit J-4

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Revenues

Tax Levy 47,292,440.00$ 46,667,561.00$ 45,750,969.00$ 44,892,930.00$ 44,058,822.00$ 44,027,175.02$ 42,394,779.04$ 41,213,293.00$ 41,014,914.00$ 37,538,261.00$

Tuition Charges 3,637,579.52 3,594,001.10 3,106,502.56 2,987,298.53 3,120,399.54 2,635,998.78 3,251,398.91 1,538,316.73 1,764,243.86 1,608,845.86

Miscellaneous 707,617.74 393,355.98 569,367.12 835,859.85 266,662.17 309,759.13 1,058,464.87 3,584,337.57 394,983.11 502,519.77

State Sources 57,413,889.72 55,258,461.25 54,434,537.28 54,811,201.59 54,237,640.15 52,331,888.15 55,383,711.42 54,014,942.95 53,819,667.88 50,323,194.78

Federal Sources 3,509,609.45 3,075,312.01 2,862,191.71 3,257,204.74 4,763,989.57 4,717,417.06 10,930,445.16 2,505,844.94 3,166,083.53 2,631,421.04

Total Revenue 112,561,136.43 108,988,691.34 106,723,567.67 106,784,494.71 106,447,513.43 104,022,238.14 113,018,799.40 102,856,735.19 100,159,892.38 92,604,242.45

Expenditures

Instruction:

Regular Instruction 28,032,016.58 27,654,640.61 28,334,715.34 27,179,251.77 27,339,416.31 27,525,944.47 28,225,521.32 27,535,033.16 31,438,619.78 26,476,693.08

Special Education Instruction 9,317,846.55 9,215,623.75 8,749,824.47 8,097,470.92 8,398,810.52 7,880,606.26 7,941,070.56 7,803,957.38 7,420,898.74 6,793,151.27

Other Special Instruction 1,780,453.16 1,766,257.81 1,758,226.22 1,505,175.22 1,461,357.72 1,482,708.53 1,578,151.32 3,795,358.69 2,490,034.07 2,975,299.29

Support Services:

Tuition 6,552,692.18 6,564,837.74 5,785,988.45 5,450,112.82 7,835,984.90 7,405,572.45 6,904,502.87 5,982,316.31 6,284,524.65 6,020,297.11

Student and Instruction Related Services 10,552,605.15 10,411,255.03 9,622,903.88 8,616,714.21 8,289,153.34 7,657,573.27 8,694,513.80 8,041,078.55 7,887,325.75 7,293,939.64

General Administrative Services 947,832.95 993,538.57 1,244,204.05 1,104,012.08 1,068,620.74 905,435.78 976,742.39 1,796,698.47 2,153,078.00 1,821,093.95

School Administrative Services 3,408,537.89 3,442,519.44 3,281,737.42 3,206,911.81 3,351,516.39 2,980,461.08 3,254,699.43 3,186,469.97 3,264,294.09 2,945,884.04

Central Services 1,000,435.29 1,086,622.94 999,777.40 1,135,900.26 1,228,002.03 1,421,471.08 1,047,032.32 1,232,768.52 1,053,615.04 1,033,011.57

Administration Information Technology 695,021.03 667,626.54 530,693.27 512,366.21 550,284.86 1,289,677.10 862,319.26 399,658.65 384,062.28 371,678.05

Plant Operations and Maintenance 6,362,979.62 6,641,005.76 8,678,237.73 5,956,311.66 6,835,516.59 5,981,094.90 6,566,385.73 6,949,554.25 6,797,980.81 6,422,041.78

Pupil Transportation 7,027,509.56 6,892,441.26 7,082,617.62 6,972,998.54 6,957,149.28 7,078,312.73 6,385,817.15 6,561,727.17 6,785,610.04 5,924,609.56

Unallocated Employee Benefits 21,524,574.72 19,970,011.07 18,715,390.98 19,945,402.18 19,769,606.39 20,000,133.43 23,541,181.15 21,909,034.60 21,334,519.78 18,645,211.70

Other Undistributed Costs 39,497.47

Special Schools 1,210.59

Charter Schools 472,183.00 475,013.00 674,253.00 6,780,574.00 5,214,298.00 3,595,940.00 2,480,868.00 125,572.00 105,444.00 22,412.00

Capital Outlay 7,735,104.01 2,034,472.26 4,967,544.22 1,430,472.63 1,949,929.67 1,852,896.32 7,185,494.25 5,172,944.82 2,681,225.03 1,129,377.19

Debt Service:

Principal 2,670,000.00 2,615,000.00 2,565,000.00 2,385,000.00 2,295,000.00 2,200,000.00 2,015,000.00 1,889,401.03 1,025,130.56 1,735,860.10

Interest and Other Charges 428,359.38 504,509.38 475,157.08 843,797.50 955,910.00 1,063,195.00 1,233,576.52 1,127,050.84 1,196,869.25 1,273,550.57

Total Expenditures 108,508,151.07 100,935,375.16 103,466,271.13 101,122,471.81 103,500,556.74 100,321,022.40 108,932,373.54 103,508,624.41 102,303,231.87 90,885,321.49

Excess (Deficiency) of Revenues

Over (Under) Expenditures 4,052,985.36 8,053,316.18 3,257,296.54 5,662,022.90 2,946,956.69 3,701,215.74 4,086,425.86 (651,889.22) (2,143,339.49) 1,718,920.96

Other Financing Sources (Uses)

Transfers to Other Funds (90,222.80)

Capital Leases (Non-budgeted) 1,811,125.24 996,397.90 1,097,177.79

Lawsuit Settlement (600,000.00)

Cancellation of Prior Year Accounts Receivable (9,431.00) (53,950.00) (11,775.29) (127,147.63)

Cancellation of Prior Year Accounts Payable 10,764.84

Cancellation of Prior Year Interfund from Payroll (7,031.77)

Refund of Prior Year Tuition (34,115.00)

Refund of Prior Year Payments for RDS Compensated Absences 5,680.39

Allowance for Uncollectible Interfund from Regional Day School (1,222,820.55)

Total Other Financing Sources (Uses) - - - (73,777.57) (9,431.00) (1,276,770.55) - 1,765,234.95 862,218.50 497,177.79

Net Change in Fund Balances 4,052,985.36$ 8,053,316.18$ 3,257,296.54$ 5,588,245.33$ 2,937,525.69$ 2,424,445.19$ 4,086,425.86$ 1,113,345.73$ (1,281,120.99)$ 2,216,098.75$

Debt Service as a Percentage of

Noncapital Expenditures 3.07% 3.15% 3.09% 3.24% 3.20% 3.31% 3.19% 3.07% 2.23% 3.35%



Changes in Fund Balances, Governmental Funds

Last Ten Fiscal Years (modified accrual basis of accounting)

Unaudited

For the Fiscal Year Ended June 30,

130

26400 Exhibit J-5

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Interest on Investments 34,769.85$ 18,459.21$ 3,713.12$ 910.60$ 11,517.63$ 59,117.42$ 36,340.56$ 145,141.76$ 252,291.96$

Use of Facilities Fees 9,881.25 2,324.09 3,643.30 3,391.25 45,009.00$ 14,375.12 49,890.60 26,849.37 16,600.00 17,468.75

Transportation Fees 168,988.75 129,481.25 245,750.00

Transportation Fees - Prior Year 4,603.49

Refund of Prior Yr. Expenses 10,849.71 151,246.52 93,337.05 225,896.47 6,486.18 51,872.24 11,965.16 21,566.39 70,275.64 158,201.99

Refund of Prior Yr. Tuition 110,761.54

Refund of Workers' Compensation Premium 259,053.06

E-Rate Refund 264,982.11

Insurance Refund 9,212.14 3,900.29 78,479.84

Settlements 90,030.76 183,061.03

Sale of Assets 26,436.75 1,009.77 12,307.63

School Bus Advertising 2,437.50 609.37

Lost Book/ID Fine 5,709.66 1,618.98 4,669.42 5,673.51

Other Refunds 25,358.80 13,619.65 34,315.14

Close Out Regional Day School 87,355.13

Voided Checks 998.26 5,937.98

Miscellaneous Other 9,276.30 13,652.13 27,526.87 215,166.99 176,452.33 876,058.18 201,830.52 51,732.24 30,107.61

Tuition 3,637,579.52 3,594,001.10 3,106,502.56 2,987,298.53 3,120,399.54 2,635,998.78 3,251,398.91 1,739,018.53 1,764,243.86 1,608,845.86

4,306,967.58$ 3,912,925.14$ 3,672,814.59$ 3,817,913.93$ 3,387,061.71$ 2,890,216.10$ 4,248,430.27$ 2,025,605.37$ 2,047,993.50$ 2,066,916.17$




General Fund - Other Local Revenue by Source

Last Ten Fiscal Years (modified accrual basis of accounting)

Unaudited

131

Revenue Capacity Information

Revenue capacity information is intended to assist users in understanding and assessingthe factors affecting the School District's ability to generate revenues. Please refer to thefollowing exhibits for a historical view of these factors and how they relate to the SchoolDistrict's ability to generate revenues.

132

26400 Exhibit J-6

Fiscal Year Less: Estimated Actual Total Direct Ended Tax-Exempt Public Net Valuation (County Equalized ) School Tax

June 30, Vacant Land Residential Farm Reg. Qfarm Commercial Industrial Apartment Total Assessed Value Property Utilities (1) Taxable Value Rate (2)

2016 56,605,500.00$ 2,273,436,000.00$ 24,109,100.00$ 4,211,400.00$ 203,287,500.00$ 31,045,900.00$ 47,975,400.00$ 2,640,670,800.00$ 436,688,700.00$ 5,396,140.00$ 2,646,066,940.00$ 2,667,100,945.00$ 1.805$

2015 67,879,900.00 2,260,122,200.00 29,630,300.00 4,380,800.00 193,524,600.00 31,104,200.00 44,388,900.00 2,631,030,900.00 424,302,600.00 5,562,775.00 2,636,593,675.00 2,655,321,675.00 1.782

2014 69,446,200.00 2,250,791,900.00 30,134,000.00 3,941,700.00 190,768,100.00 31,104,200.00 45,827,300.00 2,622,013,400.00 407,042,800.00 5,490,350.00 2,627,503,750.00 2,574,238,392.00 1.759

2013 62,386,500.00 2,257,378,900.00 31,798,200.00 4,466,800.00 193,315,400.00 31,104,200.00 45,827,300.00 2,626,277,300.00 406,841,400.00 6,474,022.00 2,632,751,322.00 2,663,222,784.00 1.721

2012 (3) 66,789,800.00 2,266,055,900.00 32,080,100.00 4,416,200.00 187,359,700.00 32,988,900.00 45,236,900.00 2,634,927,500.00 411,891,700.00 6,567,342.00 2,641,494,842.00 2,841,963,839.00 1.684

2011 30,777,100.00 1,363,496,000.00 17,892,120.00 3,696,200.00 99,135,750.00 17,273,900.00 27,860,700.00 1,560,131,770.00 267,374,200.00 3,502,155.00 1,563,633,925.00 3,056,332,545.00 2.816

2010 32,403,400.00 1,358,745,300.00 19,806,820.00 3,854,800.00 97,660,650.00 17,273,900.00 27,860,700.00 1,557,605,570.00 270,370,800.00 4,159,428.00 1,561,764,998.00 3,105,743,340.00 2.767

2009 33,910,400.00 1,351,170,300.00 21,962,820.00 4,092,900.00 94,694,450.00 18,273,900.00 27,860,700.00 1,551,965,470.00 269,017,600.00 4,015,880.00 1,555,981,350.00 3,172,336,969.00 2.686

2008 36,846,200.00 1,328,369,500.00 21,549,220.00 4,238,600.00 92,319,950.00 19,973,900.00 31,575,100.00 1,534,872,470.00 364,910,600.00 3,569,124.00 1,538,441,594.00 3,020,641,372.00 2.673

2007 41,017,800.00 1,284,205,000.00 21,452,820.00 4,226,000.00 89,258,650.00 20,132,300.00 31,575,100.00 1,491,867,670.00 263,558,500.00 3,766,762.00 1,495,634,432.00 2,671,452,855.00 2.626

(1) Taxable Value of Machinery, Implements and Equipment of Telephone, Telegraph and Messenger System Companies (2) Tax Rates are per $100.00 of Assessed Valuation (3) Revaluation

Source: Camden County Board of Taxation

TOWNSHIP OF WINSLOW SCHOOL DISTRICTAssessed Value and Actual Value of Taxable Property

Last Ten Fiscal YearsUnaudited

133

26400 Exhibit J-7

Fiscal Year Winslow Township General Total Direct Total Direct Ended School District Obligation Debt School Winslow Camden Fire and Overlapping

June 30, Basic Rate (1) Service (2) Tax Rate Township County Districts Tax Rate

2016 1.773$ 0.032$ 1.805$ 0.595$ 0.892$ 0.138$ 3.430$ 2015 1.744 0.038 1.782 0.580 0.884 0.134 3.380 2014 1.721 0.038 1.759 0.580 0.834 0.132 3.305 2013 1.682 0.039 1.721 0.567 0.840 0.133 3.261 2012 (3) 1.617 0.067 1.684 0.512 0.828 0.128 3.152 2011 2.712 0.104 2.816 0.847 1.392 0.205 5.260 2010 2.663 0.104 2.767 0.847 1.297 0.207 5.118 2009 2.622 0.064 2.686 0.782 1.263 0.203 4.934 2008 2.603 0.070 2.673 0.767 1.248 0.193 4.881 2007 2.522 0.104 2.626 0.669 1.254 0.191 4.740

(1) The district's basic tax rate is calculated from the A4F form which is submitted with the budget and the net valuation taxable.(2) Rates for debt service are based on each year's requirements.(3) Revaluation

Source: Municipal Tax Collector

TOWNSHIP OF WINSLOW SCHOOL DISTRICTDirect and Overlapping Property Tax Rates

Last Ten Fiscal Years(rate per $100 of assessed value)

Unaudited

Overlapping RatesDistrict Direct Rate

134

26400 Exhibit J-8

Taxable % of Total Taxable % of TotalAssessed Rank District Net Assessed Rank District Net

Taxpayer Value [Optional] Assessed Value Value [Optional] Assessed Value

A.C. Moore Urban Renewal, LLC 24,171,000.00$ (1) 1 0.91% 20,000,000.00$ (1) 1 1.34%Sunrise Cedar Parke SL, LLC 15,000,000.00 2 0.57% 13,500,000.00 2 0.90%Manville Insulation 13,900,000.00 3 0.53% 9,068,600.00 3 0.61%Heritage Group-Wilton’s Corner 8,145,600.00 4 0.54%Tamerlane/Colleen Manor 10,880,100.00 4 0.41% 6,968,000.00 5 0.47%Taylor Woods 9,476,900.00 (1) 5ARC HR5SINJ001, Inc. 8,258,600.00 6 0.31%Edgewood Acres/Gardens 8,098,400.00 7 0.31% 5,595,000.00 6 0.37%Inland American Sicklerville, LLC 5,570,000.00 7 0.37%Carmax Auto Superstores, Inc 7,500,000.00 (1) 8 0.28%Banko Beverage 7,050,000.00 9 0.27% 5,165,500.00 8 0.35%Winslow Center Partners 6,100,000.00 10 0.23%Bell Atlantic 3,766,762.00 9 0.25%Winslow Plaza Investors 3,500,000.00 10 0.23%

Total 110,435,000.00$ 3.82% 81,279,462.00$ 5.43%

(1) Currently under Tax Abatement Agreements

Source: Municipal Tax Assessor

2016 2007

TOWNSHIP OF WINSLOW SCHOOL DISTRICTPrincipal Property Tax Payers

Current Year and Nine Years AgoUnaudited

135

26400 Exhibit J-9

General PurposeTaxes Levied

Fiscal Year for the Percentage Collections inEnded June 30, Fiscal Year Amount of Levy Subsequent Years

2016 45,799,758.00$ 43,167,288.00$ 94% 2,632,470.00$ 2015 46,667,561.00 42,778,597.60 92% 3,888,963.40 2014 45,750,969.00 41,938,388.25 92% 3,812,580.75 2013 44,892,930.00 41,296,418.75 92% 3,596,511.25 2012 44,058,822.00 40,517,007.08 92% 3,541,814.92 2011 44,027,175.02 44,027,175.02 100%2010 40,876,097.00 40,876,097.00 100%2009 39,803,697.00 39,803,697.00 100%2008 39,942,508.00 39,942,508.00 100%2007 35,994,372.00 35,994,372.00 100%

(1) School taxes are collected by the Municipal Tax Collector. Under New Jersey State Statute, a municipality is required to remit to the school district the entire property tax balance, in the amount voted upon or certified prior to the end of the school year.

Source: District records including the Certificate and Report of School Taxes (A4F form)

Collected within the Fiscal Year of the Levy (1)

TOWNSHIP OF WINSLOW SCHOOL DISTRICTProperty Tax Levies and Collections


136

Debt Capacity Information

Debt capacity information is intended to assist users in understanding and assessing theSchool District's debt burden and it’s ability to issue additional debt. Please refer to thefollowing exhibits for a historical view of the School District's outstanding debt and its debtcapacity.

137

26400 Exhibit J-10

Business-Type Activities

Fiscal General Certificates Bond Percentage of Year Ended Obligation of Capital Anticipation Personal

June 30, Bonds (1) Participation Leases Notes (BANs) Capital Leases Total District Income (2) Per Capita (3)

2016 10,410,000.00$ 10,410,000.00$ N/A N/A2015 13,080,000.00 13,080,000.00 N/A N/A2014 15,695,000.00 15,695,000.00 0.30% 46,886.00$ 2013 18,260,000.00 3,919.55$ 18,263,919.55 0.25% 45,544.00 2012 21,335,000.00 12,085.95 21,347,085.95 0.21% 45,540.00 2011 23,630,000.00 49,988.23 23,679,988.23 0.19% 44,359.00 2010 25,830,000.00 421,249.23 26,251,249.23 0.16% 42,457.00 2009 27,845,000.00 2,687,700.91 30,532,700.91 0.14% 42,242.00 2008 26,215,000.00 1,657,001.32 27,872,001.32 0.15% 42,260.00 2007 27,030,000.00 1,688,432.27 28,718,432.27 0.14% 40,996.00

(1) District Records(2) Personal income has been estimated based upon the municipal population and per capita(3) Per Capita personal income by municipality-estimated based upon Census Bureau midyear population estimates

N/A At the time of CAFR completion, this data was not yet available


TOWNSHIP OF WINSLOW SCHOOL DISTRICTRatios of Outstanding Debt by Type


138

26400 Exhibit J-11

General Net General Percentage of Fiscal Year Obligation Bonded Debt Actual Taxable

Ended June 30, Bonds Deductions Outstanding (1) Value of Property (2) Per Capita (3)

2016 10,410,000.00$ 10,410,000.00$ 0.39% N/A2015 13,080,000.00 13,080,000.00 0.50% 3352014 15,695,000.00 15,695,000.00 0.60% 4042013 18,260,000.00 18,260,000.00 0.69% 4662012 21,335,000.00 21,335,000.00 0.81% 5442011 23,630,000.00 23,630,000.00 1.51% 5992010 25,830,000.00 25,830,000.00 1.65% 6542009 27,845,000.00 27,845,000.00 1.79% 7032008 26,215,000.00 26,215,000.00 1.70% 6662007 27,030,000.00 27,030,000.00 1.81% 690

Sources: (1) District Records (2) Net Assessed Valuation provided by Abstract of Ratables, County Board of Taxation (3) Per Capita calculation based upon population information provided by the NJ Dept. of Labor and Workforce Development

General Bonded Debt Outstanding

TOWNSHIP OF WINSLOW SCHOOL DISTRICTRatios of Net General Bonded Debt Outstanding


139

26400 Exhibit J-12

Statutory Net DebtNet OutstandingDebt Allocated to

Gross Debt Deductions Outstanding Winslow Township

Municipal Debt: (1)Winslow Township School District 11,365,000.00$ 11,365,000.00$ Winslow Township 34,439,411.64 22,309,015.72 12,130,395.92$ 12,130,395.92$

45,804,411.64 33,674,015.72 12,130,395.92 12,130,395.92

Overlapping Debt Apportioned to the Municipality:

County of Camden: (2)General:

Bonds 35,695,000.00 12,761,633.00 (3) 22,933,367.00 1,635,540.68 (5)Loan Agreement 269,003,014.00 269,003,014.00 19,184,508.39 (5)Bonds Issued by Other Public Bodies

Guaranteed by the County 471,754,632.00 471,754,632.00 (4)

776,452,646.00 484,516,265.00 291,936,381.00 20,820,049.06

822,257,057.64$ 518,190,280.72$ 304,066,776.92$ 32,950,444.98$

Sources:(1) Winslow Township Annual Debt Statement - December 31, 2015(2) Camden County Report of Audit - December 31, 2015

(3) Includes Reserve for Payment of Bonds, Other Accounts Receivable and General Obligation Pension Refunding Bonds.

(4) Deductible in accordance with N.J.S.A. 40:37A-80.

(5) Such debt is allocated as a proportion of the Township's share of the total 2015 Equalized Value, which is 7.13%.

The source for this computation was the 2015 Table of Equalized Valuations, which is supplied by the New Jersey Division of Taxation.

Unaudited

Direct and Overlapping Governmental Activities DebtTOWNSHIP OF WINSLOW SCHOOL DISTRICT

As of December 31, 2015

140

26400 Exhibit J-13

Legal Debt Margin Calculation for Fiscal Year 2016

Equalized Valuation Basis (1)

2015 2,640,801,867.00$

2014 2,634,395,057.00

2013 2,563,722,472.00

[A] 7,838,919,396.00$

Average equalized valuation of taxable property [A/3] 2,612,973,132.00$

Debt limit ( 4% of average equalization value) (2) [B] 104,518,925.28

Total Net Debt Applicable to Limit [C] 11,365,000.00

Legal Debt Margin [B-C] 93,153,925.28$

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Debt limit 104,518,925.28$ 104,723,925.92$ 107,099,572.39$ 113,180,418.16$ 118,587,122.75$ 123,726,858.07$ 121,216,618.29$ 114,253,019.89$ 100,008,360.63$ 83,991,870.41$

Total net debt applicable to limit (3) 11,365,000.00 14,115,000.00 16,780,000.00 18,260,000.00 21,335,000.00 23,630,000.00 25,830,000.00 27,970,000.00 26,215,000.00 27,030,000.00

Legal debt margin 93,153,925.28$ 90,608,925.92$ 90,319,572.39$ 94,920,418.16$ 96,957,122.75$ 100,096,858.07$ 95,386,618.29$ 86,283,019.89$ 56,961,870.41$ 56,961,870.41$

Total net debt applicable to the limit

as a percentage of debt limit 10.87% 13.48% 15.67% 16.13% 17.99% 19.10% 21.31% 24.48% 26.21% 32.18%

Sources:

(1) Equalized valuation bases were provided by the Annual Report of the State of New Jersey, Department of Treasury, Division of Taxation.

(2) Limit set by NJSA 18A:24-19 for a K through 12 district.

(3) District Records


Legal Debt Margin Information

Last Ten Fiscal Years

Unaudited

Fiscal Year

141

Demographic and Economic Information

Demographic and economic information is intended (1) to assist users in understandingthe socioeconomic environment within which the School District operates and (2) toprovide information that facilitates comparisons of financial statement information overtime and among school districts. Please refer to the following exhibits for a historical viewof the demographic and economic statistics and factors prevalent in the location in whichthe School District operates.

142

26400 Exhibit J-14

Per Capita Personal Personal Unemployment

Year Population (1) Income (2) Income (3) Rate (4)

2016 N/A N/A N/A N/A2015 39,019 N/A N/A 7.00%2014 38,895 1,823,630,970.00$ 46,886.00$ 8.10%2013 39,165 1,783,730,760.00 45,544.00 9.50%2012 39,238 1,786,898,520.00 45,540.00 10.90%2011 39,466 1,750,672,294.00 44,359.00 10.80%2010 39,493 1,676,754,301.00 42,457.00 11.00%2009 39,600 1,672,783,200.00 42,242.00 10.50%2008 39,365 1,663,564,900.00 42,260.00 7.10%2007 39,169 1,605,772,324.00 40,996.00 5.80%

Sources: (1) Population information provided by the NJ Dept. of Labor and Workforce Development (2) Personal income has been estimated based upon the municipal population and per capita

personal income presented (3) Per Capita personal income by municipality-estimated based upon the 2010/2000 Census published

by the US Bureau of Economic Analysis. (4) Unemployment data provided by the NJ Dept. of Labor and Workforce Development

Demographic and Economic StatisticsLast Ten Fiscal Years

Unaudited


143

26400 Exhibit J-15

Employer Employees

Rank

(Optional)

Percentage of

Total

Employment Employees Rank (Optional)

Percentage of

Total

Employment

Virtua Health System 3,024 1 N/A 2,600 2 N/ACooper University Health System 3,000 2 N/A 3,100 1 N/AOur Lady of Lourdes Health System 2,451 3 N/A 2,400 3 N/AKennedy Health System 2,282 4 N/A 1,600 4 N/ABancroft NeuroHealth 1,600 5 N/A 1,000 6 N/ACampbell Soup Company 1,400 6 N/A 1,500 5 N/AT.D.Bank, N.A. 1,364 7 N/AAluminum Shapes 1,300 8 N/AL-3 Communication Systems - East 1,111 9 N/A 900 7 N/ABaxter Healthcare 1,000 10 N/ACIGNA 700 8 N/A

18,532 13,800

Source: The Camden County Improvement Authority and Courier-post "Top Employers"

Philadelphia Business Journal, Book of Lists Employee information for the Township is not available.

20072016

TOWNSHIP OF WINSLOW SCHOOL DISTRICTPrincipal Employers in Camden County

Current Year and Nine Years AgoUnaudited

144

Operating Information

Operating information is intended to provide contextual information about the SchoolDistrict's operations and resources to assist readers in using financial statementinformation to understand and assess the School District's economic condition. Pleaserefer to the following exhibits for a historical view of the factors and statistics pertinent tothe School District's operations.

145

26400 Exhibit J-16

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

Function/Program

Instruction

Regular 342 339 338 326 335 357 382 405 383 360

Special education 115 117 114 105 108.5 114 111 114 179 175

Other special education 53 57 56 54.5 58.5 59 77 50 53 33

Other instruction 10 10 9 9 9 10 13 9 2 2

Adult/continuing education programs 1

Support Services:

Attendance and Social Work 3 7 3.5 4 4.5 7 15 15 5 6

Health Services 10 10 10 10 10 12 13 14 13 8

Student & instruction related services 141 169 79 104

General administrative services 37 36 40.5 41.5 39.5 41 48 62 50 19

School administrative services 28 30 29 30 30 29.5 29 27 49 46

Business administrative services 12 9 9 9 9 12.5 14 17 21 22

Plant operations and maintenance 49 112 135 135

Pupil transportation 75 75 75 73 75.5 77 80 81 86 75

Food Service 3 3 4 4 5 8 14 11 12 13

Child Care 4 9 9 24 27 28 26

Total 688 693 688 670 694 736 1,010 1,113 1,095 1,025

Source: District Personnel Records


Full-time Equivalent District Employees by Function/Program


Unaudited

146

26400 Exhibit J-17

Average Daily Average Daily % Change in Student

Teaching Enrollment Attendance Average Daily Attendance

Fiscal Enrollment Staff (1) Elementary Elementary Middle School High School (ADE) (2) (ADA) (2) Enrollment Percentage

2016 4,903 592 9.37/1 7.96/1 6.23/1 8.86/1 4,849 4,608 0.23% 95.03%

2015 4,890 584 9.58/1 8.04/1 6.56/1 8.65/1 4,838 4,603 -0.49% 95.14%

2014 4,909 518 9.72/1 8.87/1 8.68/1 10.35/1 4,862 4,614 5.06% 94.90%

2013 5,137 519 10.33/1 9.26/1 8.97/1 10.68/1 4,628 4,388 -5.61% 94.81%

2012 5,343 510 11.89/1 10.05/1 8.77/1 10.51/1 4,903 4,649 -6.77% 94.82%

2011 5,652 570 10.68/1 9.54/1 8.12/1 10.65/1 5,259 4,967 -3.11% 94.45%

2010 5,941 507 10.66/1 12.37/1 11.82/1 12.27/1 5,428 5,098 -4.39% 93.92%

2009 6,006 526 10.57/1 11.58/1 11.06/1 11.84/1 5,677 5,236 -7.24% 92.23%

2008 6,027 568 9.93/1 10.80/1 10.41/1 12.62/1 6,120 5,795 -3.22% 94.69%

2007 6,281 593 10.45/1 11.22/1 11.33/1 12.10/1 6,324 5,966 -3.67% 94.34%

Sources: District records

(1) Teaching staff includes only full-time equivalents of certificated staff.

(2) Average daily enrollment and average daily attendance are obtained from the School Register Summary (SRS).

Pupil/Teacher Ratio


Operating Statistics


Unaudited

147

26400 Exhibit J-18

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

District Building

School 1 (First Year 1967)

Square Feet 43,700 43,700 43,700 43,700 43,700 43,700 43,700 43,700 43,700 43,700

Capacity (students) 305 305 305 305 305 305 305 305 305 305

Enrollment 379 354 364 358 320 333 333 376 376 376


Square Feet 43,700 43,700 43,700 43,700 43,700 43,700 43,700 43,700 43,700 43,700


Enrollment 354 382 345 280 340 289 289 368 368 368


Square Feet 53,650 53,650 53,650 53,650 53,650 53,650 53,650 53,650 53,650 53,650


Enrollment 486 466 440 404 384 344 344 483 483 483


Square Feet 69,075 69,075 69,075 69,075 69,075 69,075 69,075 69,075 69,075 69,075


Enrollment 499 493 492 491 436 420 420 438 438 438


Square Feet 111,680 111,680 111,680 111,680 111,680 111,680 111,680 111,680 111,680 111,680


Enrollment 631 606 633 605 673 744 744 645 645 645


Square Feet 111,680 111,680 111,680 111,680 111,680 111,680 111,680 111,680 111,680 111,680


Enrollment 491 512 481 533 533 640 640 701 701 701

Middle School

Winslow Township Middle School (First Year 1970)

Square Feet 193,567 193,567 193,567 193,567 193,567 193,567 193,567 193,567 193,567 193,567

Capacity (students) 1,127 1,127 1,127 1,127 1,127 1,127 1,127 1,127 1,127 1,127

Enrollment 717 754 844 788 858 1,296 1,296 1,421 1,421 1,421

High School

Winslow Township High School (First Year 1958)

Square Feet 204,762 204,762 204,762 204,762 204,762 204,762 204,762 204,762 204,762 204,762

Capacity (students) 1,111 1,111 1,111 1,111 1,111 1,111 1,111 1,111 1,111 1,111

Enrollment 1,325 1,323 1,310 1,277 1,360 1,540 1,540 1,353 1,353 1,353

Other

Central Administration (1970) - Square Feet - Demolished FY15 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,220

Administration Building (Formerly New Jersey

Regional Day School as of 2014) - Square Feet 27,180 27,180 27,180 27,180 27,180 27,180 27,180 27,180 27,180 27,180

Curriculum & Technology Offices (Formerly Board Office -

- as of 2014) - Square Feet 5,642 5,642 5,642 5,642 5,642 5,642 5,642 5,642 5,642 5,642

Special Services/Maintenance - Square Feet 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200

Bus Garage - Square Feet 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000

Custodial Warehouse - Square Feet 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

M&O Garage Warehouse - Square Feet 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000

School #1 Garage - Square Feet 500 500 500 500 500 500 500 500 500 500

School #2 Garage - Square Feet 500 500 500 500 500 500 500 500 500 500

Middle School Garage - Square Feet 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500

Number of Schools at June 30, 2016

Elementary = 6

Middle School = 1

Senior High School = 1

Source: District records

Elementary


Unaudited


School Building Information

148

26400 Exhibit J-19

* School Facilities Project # (s) 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007

School 1 030 75,062.94$ 43,950.35$ 143,364.34$ 37,142.45$ 90,508.88$ 21,920.64$ 82,755.14$ 71,726.70$ 48,274.83$ 54,238.45$

School 2 040 34,765.47 41,134.69 118,682.26 37,142.45 90,508.88 21,920.64 82,755.14 71,726.70 48,274.83 54,238.45

School 3 050 38,468.67 7,683.98 324,369.08 48,220.03 117,502.76 28,458.38 107,436.49 93,118.87 62,672.59 70,414.83

School 4 060 41,088.46 58,845.35 166,017.80 48,220.03 117,502.76 28,458.38 107,436.49 93,118.87 62,672.59 70,414.83

School 5 070 35,491.34 32,978.36 323,243.84 51,478.14 125,442.13 30,381.24 114,695.72 99,410.69 66,907.22 75,172.59

School 6 080 25,280.33 22,888.84 336,695.25 51,478.14 125,442.13 30,381.24 114,695.72 99,410.69 66,907.22 75,172.59

Middle School 020 56,724.36 64,237.57 537,105.47 188,970.37 460,483.78 111,526.07 421,034.91 364,925.30 245,608.79 275,950.03

High School 010 133,685.96 296,531.70 250,411.25 177,241.18 431,902.02 104,603.76 394,901.70 342,274.77 230,364.11 258,822.10

Administration 999 54,991.20 49,996.50 820,696.13 11,729.20 28,581.75 6,922.31 26,133.20 22,650.54 15,244.68 17,127.93

Total School Facilities 495,558.73 618,247.34 3,020,585.42 651,621.98 1,587,875.09 384,572.64 1,451,844.50 1,258,363.11 846,926.86 951,551.82

Other Facilities 999 69,238.00

Total 495,558.73$ 618,247.34$ 3,089,823.42$ 651,621.98$ 1,587,875.09$ 384,572.64$ 1,451,844.50$ 1,258,363.11$ 846,926.86$ 951,551.82$

* School Facilities as defined under EFCFA.

(N.J.A.C. 6A:26-1.2 and N.J.A.C. 6A:26A-1.3)


Schedule of Required Maintenance


Unaudited

UNDISTRIBUTED EXPENDITURES - REQUIRED MAINTENANCE FOR SCHOOL FACILITIES

11-000-261-XXX



149

26400 Exhibit J-20

Coverage Deductible

New Jersey Schools Insurance Group (NJSIG)

Commercial Property Coverage:

Blanket Building & Business Personal Property 185,208,085.00$ 5,000.00$

General Liability:

Products and Completed Operations 11,000,000.00

Personal and Advertising Injury 11,000,000.00

Combined Single Limit for Bodily Injury & Property Damage 11,000,000.00

Child Molestation/Sexual Abuse Limit - Occurrence 11,000,000.00

Child Molestation/Sexual Abuse Limit - Annual Pool Aggregate 17,000,000.00

Employee Benefits Limit 11,000,000.00 1,000.00

Commercial Inland Marine:

Blanket Hardware and Software 1,300,000.00 1,000.00

Boiler and Machinery:

Combined Single Limit per Accident for Property Damage and

Business Income 100,000,000.00 5,000.00

Commercial Crime Section:

Employee Dishonesty Coverage 100,000.00 1,000.00

Business Auto Coverage:

Combined Single Limit 11,000,000.00 1,000.00

Pollution Liability Policy:

EIL - Incident Limit 1,000,000.00

EIL - Aggregate Limit 11,000,000.00 25,000.00

School District Legal Liability:

Legal Liability Limit 11,000,000.00 25,000.00

Workers Compensation Policy:

Bodily Injury by Accident 2,000,000.00

Bodily Injury by Disease - Aggregate Limit 2,000,000.00

Bodily Injury by Disease - Each Employee 2,000,000.00

Ohio Casualty Group

Public Official Bond - Board Secretary/Business Administrator 450,000.00

Public Official Bond - Board Secretary/Assistant Business Administrator 35,000.00

United States Fire Insurance Company

Student Accident Policies:

Catastrophic Student Accident Coverage:

Accident Medical Expense Benefit - Maximum Benefit per Participant 1,000,000.00

Catastrophic Cash Benefit - Maximum Benefit Amount 1,000,000.00

Berkely Life and Health Insurance

Student Accident Policies:

Maximum Benefit Amount 1,000,000.00


Insurance Schedule

June 30, 2016

Unaudited

150

SINGLE AUDIT SECTION

151

Exhibit K-2

REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND REPORT ON INTERNAL CONTROLOVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND

STATE OF NEW JERSEY CIRCULAR 15-08-OMB

INDEPENDENT AUDITOR’S REPORT


Report on Compliance for Each Major Federal and State Program

We have audited the Township of Winslow School District’s, in the County of Camden, State of New Jersey,compliance with the types of compliance requirements described in the OMB Compliance Supplement and the New Jersey State Grant Compliance Supplement that could have a direct and material effect on each of the School District’s major federal and state programs for the fiscal year ended June 30, 2016. The School District's major federal and state programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.

Management’s Responsibility

Management is responsible for compliance with federal and state statutes, regulations, and the terms and conditions of its federal and state awards applicable to its federal and state programs.

Auditor’s Responsibility

Our responsibility is to express an opinion on compliance for each of the School District's major federal and state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; audit requirements as prescribed by the Division of Administration and Finance, Department of Education, State of New Jersey; Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Those standards, the Uniform Guidance, and State of New Jersey Circular 15-08-OMB, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the typesof compliance requirements referred to above that could have a direct and material effect on a major federal or state program occurred. An audit includes examining, on a test basis, evidence about the Township of WinslowSchool District's, in the County of Camden, State of New Jersey, compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal and state program. However, our audit does not provide a legal determination of the School District's compliance.

Opinion on Each Major Federal and State Program

In our opinion, the Township of Winslow School District, in the County of Camden, State of New Jersey, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal and state programs for the fiscal year ended June 30, 2016.

152

26400 Exhibit K-2

Other Matters

The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and New Jersey Circular 15-08-OMB, and which is described in the accompanying Schedule of Findings and Questioned Costs and Independent Auditor’s Management Report on Administrative Findings - Financial, Compliance and Performance as item no.: 2016-001. Our opinion on each major federal and state program is not modified with respect to this matter.

The School District’s response to the noncompliance finding identified in our audit is described in theaccompanying Schedule of Findings and Questioned Costs. The School District’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Report on Internal Control Over Compliance

Management of the Township of Winslow School District, in the County of Camden, State of New Jersey, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal or state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal or state program and to test and report on internal control over compliance in accordance with the Uniform Guidance and State of New Jersey Circular 15-08-OMB, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal or state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal or state program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal or state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might bematerial weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

153

26400 Exhibit K-2

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and State of New Jersey Circular 15-08-OMB. Accordingly, this report is not suitable for any otherpurpose.





154

Pass-Through UnearnedFederal Grantor/ Federal Federal Entity Program or Revenue/Pass-Through Grantor/ CFDA FAIN Identifying Award (Accounts Due toProgram or Cluster Title Number Number Number Amount From To Receivable) Grantor

U.S. Department of EducationPassed-Through State Department of Education:

General Fund:Medical Assistance Program (SEMI) 93.778 1605NJ5MAP 16-100-054-7540-211 169,748.69$ 7/1/15 6/30/16Medical Assistance Program (SEMI) 93.778 1605NJ5MAP 15-100-054-7540-211 214,683.65 7/1/14 6/30/15 (79,984.63)$ Medical Assistance Program (SEMI)

Prior Year Cost Settlement (13-14) 93.778 1605NJ5MAP 16-100-054-7540-211 142,404.74 7/1/13 6/30/14

Total Medical Assistance Program (SEMI) (79,984.63) -

Total General Fund (79,984.63) -

U.S. Department of EducationPassed-Through State Department of Education:

Special Revenue Fund:Title I - Cluster

Title I - Part A 84.010 S010A150030 NCLB582016 1,299,609.00 7/1/15 6/30/16Title I - Part A 84.010 S010A150030 NCLB582015 956,405.00 7/1/14 6/30/15 (387,556.66)

Total Title I Cluster (387,556.66) -

I.D.E.A. Part B ClusterI.D.E.A. Part B Basic Regular 84.027 H027A150100 FT582016 1,304,019.00 7/1/15 6/30/16I.D.E.A. Part B Basic Regular 84.027 H027A150100 FT582015 1,259,183.00 7/1/14 6/30/15 (76,387.27) I.D.E.A. Part B Preschool 84.173 H173A150114 PSH582016 61,468.00 7/1/15 6/30/16I.D.E.A. Part B Preschool 84.173 H173A150114 PSH582015 60,061.00 7/1/14 6/30/15 (527.14) I.D.E.A. Part B Preschool 84.173 H173A150114 PSH582014 59,575.00 7/1/13 6/30/14 (3.90)

Total I.D.E.A. Part B Cluster (76,918.31) -

Other Grants:Title II A 84.367 S367A150029 NCLB582016 202,261.00 7/1/15 6/30/16Title II A 84.367 S367A150029 NCLB582015 207,106.00 7/1/14 6/30/15 (53,321.57)Title II A 84.367 S367A150029 NCLB582014 203,426.00 7/1/13 6/30/14 (59,152.97)Title III 84.365 S365A150030 NCLB582016 13,170.00 7/1/15 6/30/16Title III 84.365 S365A150030 NCLB582015 17,640.00 7/1/14 6/30/15 (4,966.97) Title III - Immigrant 84.365 S365A150030 NCLB582016 11,671.00 7/1/15 6/30/16Title III - Immigrant 84.365 S365A150030 NCLB582015 5,956.00 7/1/14 6/30/15 (5,837.46) Career and Technical Education (Perkins) 84.048 V048A150030 PERK582016 30,504.00 7/1/15 6/30/16Career and Technical Education (Perkins) 84.048 V048A150030 PERK582015 65,299.00 7/1/14 6/30/15 (31,780.41) JROTC 99.472 Not Available N/A 69,863.97 7/1/15 6/30/16JROTC 99.472 Not Available N/A 61,914.58 7/1/14 6/30/15 (5,748.80)

Total Other Grants (160,808.18) -

Total Special Revenue Fund (625,283.15) -

U.S. Department of AgriculturePassed-Through State Department of Education

Enterprise Fund:Child Nutrition Cluster:

Non-Cash Assistance: Food Distribution 10.555 16161NJ304N1099 N/A 190,507.28 7/1/15 6/30/16 Food Distribution 10.555 16161NJ304N1099 N/A 139,603.78 7/1/14 6/30/15 14,281.53

Total Non-Cash Assistance 14,281.53 -

Cash Assistance: National School Lunch Program 10.555 16161NJ304N1099 16-100-026-3350-010 1,255,454.61 7/1/15 6/30/16 National School Lunch Program 10.555 16161NJ304N1099 15-100-026-3350-010 1,214,097.36 7/1/14 6/30/15 (90,438.34) School Breakfast Program 10.553 16161NJ304N1099 16-100-028-3350-010 287,057.41 7/1/15 6/30/16 School Breakfast Program 10.553 16161NJ304N1099 15-100-028-3350-010 281,061.21 7/1/14 6/30/15 (21,812.61) Summer Food Service Program 10.559 16161NJ304N1099 15-100-034-3350-010 54,666.92 7/1/14 6/30/15

Total Cash Assistance (112,250.95) -

Total Child Nutrition Cluster (97,969.42) -

Total Enterprise Fund (97,969.42) -

Total Federal Awards (803,237.20)$ -$

The accompanying Notes to Financial Statements and Notes to Schedules of Expenditures of Federal Awards and State Financial

Assistance are an integral part of this schedule.

Grant Period

26400

Balance at June 30, 2015


For the Fiscal Year Ended June 30, 2016Schedule of Expenditures of Federal Awards

155

Schedule K-3

Carryover/ Total Passed- Repayment of(Walkover) Cash Pass-Through Direct Budgetary Through to Prior Years' (Accounts Unearned Due to

Amount Received Funds Funds Expenditures Subrecipients Adjustments Balances Receivable) Revenue Grantor

159,715.75$ 169,748.69$ 169,748.69$ (10,032.94)$ 79,984.63 -

142,404.74 142,404.74 (142,404.74)

- 239,700.38 312,153.43 - 312,153.43 - - - (152,437.68) - -

- 239,700.38 312,153.43 - 312,153.43 - - - (152,437.68) - -

143,460.34$ 841,031.00 1,336,779.26 1,336,779.26 (352,287.92) (143,460.34) 531,017.00 -

- 1,372,048.00 1,336,779.26 - 1,336,779.26 - - - (352,287.92) - -

187,623.73 1,077,495.00 1,367,822.19 1,367,822.19 (102,703.46) (187,623.73) 264,011.00 -

18,944.86 46,296.10 72,016.00 72,016.00 (6,775.04) (18,944.86) 19,472.00 -

3.90 -

- 1,407,278.00 1,439,838.19 - 1,439,838.19 - - - (109,478.50) - -

117,209.43 133,893.03 298,350.98 298,350.98 (47,248.52)(117,209.43) 170,531.00 -

59,152.97 - 6,573.03 2,951.00 14,687.42 14,687.42 (5,163.39)

(6,573.03) 11,540.00 - 118.54 8,794.05 8,794.05 (8,675.51)

(118.54) 5,838.00 - (118.00) 5,791.00 29,892.15 29,892.15 (24,101.15)

31,781.00 - (0.59)$ 63,969.45 69,863.97 69,863.97 (5,894.52) 5,748.80 -

- 491,196.25 421,588.57 - 421,588.57 - (0.59) - (91,201.09) - -

- 3,270,522.25 3,198,206.02 - 3,198,206.02 - (0.59) - (552,967.51) - -

190,507.28 158,597.65 158,597.65 31,909.63$ 14,281.53 14,281.53

- 190,507.28 172,879.18 - 172,879.18 - - - - 31,909.63 -

1,163,599.41 1,255,454.61 1,255,454.61 (91,855.20) 90,438.34 -

264,138.69 287,057.41 287,057.41 (22,918.72) 21,812.61 - 54,666.92 54,666.92 54,666.92

- 1,594,655.97 1,597,178.94 - 1,597,178.94 - - - (114,773.92) - -

- 1,785,163.25 1,770,058.12 - 1,770,058.12 - - - (114,773.92) 31,909.63 -

- 1,785,163.25 1,770,058.12 - 1,770,058.12 - - - (114,773.92) 31,909.63 -

-$ 5,295,385.88$ 5,280,417.57$ -$ 5,280,417.57$ -$ (0.59)$ -$ (820,179.11)$ 31,909.63$ -$

Balance at June 30, 2016Budgetary Expenditures

156

UnearnedProgram or Revenue/ Carryover/

State Grantor / Grant or State Award (Accounts Due to (Walkover)Program or Cluster Title Project Number Amount From To Receivable) Grantor Amount

State Department of Education (State Aid):General Fund:

State Aid - Public Cluster:Equalization Aid 16-495-034-5120-078 38,341,995.00$ 7/1/15 6/30/16Special Education Categorical Aid 16-495-034-5120-089 3,025,665.00 7/1/15 6/30/16Security Aid 16-495-034-5120-084 1,389,418.00 7/1/15 6/30/16Adjustment Aid 16-495-034-5120-085 209,733.00 7/1/15 6/30/16Per Pupil Growth Aid 16-495-034-5120-097 46,290.00 7/1/15 6/30/16PARCC Readiness Aid 16-495-034-5120-098 46,290.00 7/1/15 6/30/16Equalization Aid 15-495-034-5120-078 38,341,995.00 7/1/14 6/30/15 (3,716,328.08)$ Special Education Categorical Aid 15-495-034-5120-089 3,025,665.00 7/1/14 6/30/15 (293,264.96)

Security Aid 15-495-034-5120-084 1,389,418.00 7/1/14 6/30/15 (134,670.43)Adjustment Aid 15-495-034-5120-085 209,733.00 7/1/14 6/30/15 (20,328.54)Per Pupil Growth Aid 15-495-034-5120-097 46,290.00 7/1/14 6/30/15 (4,486.69)PARCC Readiness Aid 15-495-034-5120-098 46,290.00 7/1/14 6/30/15 (4,486.69)

Total State Aid - Public Cluster (4,173,565.39) - -

Extraordinary Special Education Cost Aid:Extraordinary Aid 16-100-034-5120-473 283,586.00 7/1/15 6/30/16Extraordinary Aid 15-100-034-5120-473 349,781.00 7/1/14 6/30/15 (279,934.00)

Total Extraordinary Special Education Cost Aid (279,934.00) - -

Transportation Aid:Transportation Aid 16-495-034-5120-014 1,066,545.00 7/1/15 6/30/16Transportation Aid 15-495-034-5120-014 1,066,545.00 7/1/14 6/30/15 (103,375.71)Nonpublic Transportation Aid 16-495-034-5120-014 79,906.00 7/1/15 6/30/16Nonpublic Transportation Aid 15-495-034-5120-014 56,786.00 7/1/14 6/30/15 (56,786.00)

Total Transportation Aid (160,161.71) - -

Reimbursed TPAF Social Security Contributions:Reimbursed TPAF Social Security Contributions 16-495-034-5094-003 2,875,504.70 7/1/15 6/30/16Reimbursed TPAF Social Security Contributions 15-495-034-5094-003 2,927,848.45 7/1/14 6/30/15 (146,093.87)

Total Reimbursed TPAF Social Security Contributions (146,093.87) - -

Total General Fund (4,759,754.97) - -

Special Revenue Fund:Preschool Education Aid:

Preschool Education Aid 16-495-034-5120-086 1,441,786.64 7/1/15 6/30/16 306,877.64$ Preschool Education Aid 15-495-034-5120-086 1,338,227.30 7/1/14 6/30/15 268,396.74 (306,877.64)

Total Preschool Education Aid 268,396.74 - -

N.J. Nonpublic Textbook Aid:Textbook Aid 16-100-034-5120-064 4,911.00 7/1/15 6/30/16Textbook Aid 15-100-034-5120-064 7,686.00 7/1/14 6/30/15 1,662.20$

Total N.J. Nonpublic Textbook Aid - 1,662.20 -

N.J. Nonpublic Technology Initiative Aid:Technology Initiative Aid 16-100-034-5120-373 2,236.00 7/1/15 6/30/16Technology Initiative Aid 15-100-034-5120-373 4,128.00 7/1/14 6/30/15 417.50

Total N.J. Nonpublic Technology Initiative Aid - 417.50 -

N.J. Nonpublic Nursing Aid:Nursing Services 16-100-034-5120-070 7,740.00 7/1/15 6/30/16Nursing Services 15-100-034-5120-070 12,236.00 7/1/14 6/30/15 122.36

Total N.J. Nonpublic Nursing Aid - 122.36 -

N.J. Nonpublic Auxiliary Services Aid:Auxiliary Services:

Compensatory Education 16-100-034-5120-067 51,608.00 7/1/15 6/30/16Transportation (CST) 16-100-034-5120-067 13,984.00 7/1/15 6/30/16Home Instruction 16-100-034-5120-067 5,037.00 7/1/15 6/30/16

Auxiliary Services:Compensatory Education 15-100-034-5120-067 34,936.00 7/1/14 6/30/15 11,645.20 Transportation (CST) 15-100-034-5120-067 11,475.00 7/1/14 6/30/15 7,517.04Home Instruction 15-100-034-5120-067 2,035.00 7/1/14 6/30/15 (2,034.63)

Total N.J. Nonpublic Auxiliary Services Aid (2,034.63) 19,162.24 -

N.J. Nonpublic Handicapped Services Aid:Handicapped Services:

Initial Exam & Class 16-100-034-5120-066 14,655.00 7/1/15 6/30/16Corrective Speech 16-100-034-5120-066 22,574.00 7/1/15 6/30/16Supplementary Instruction 16-100-034-5120-066 8,169.00 7/1/15 6/30/16

Handicapped Services:Corrective Speech 15-100-034-5120-066 19,437.00 7/1/14 6/30/15 15,637.95 Supplementary Instruction 15-100-034-5120-066 9,416.00 7/1/14 6/30/15 7,925.07Initial Exam & Class 15-100-034-5120-066 17,645.00 7/1/14 6/30/15 5,945.26

Total N.J. Nonpublic Handicapped Services Aid - 29,508.28 -

Grant Period

26400


TOWNSHIP OF WINSLOW SCHOOL DISTRICTSchedule of Expenditures of State Financial Assistance


157

Schedule K-4

UnearnedPassed- Repayment of Revenue/ Budgetary Cumulative

Cash Budgetary Trough to Prior Years' (Accounts Interfund Due to Receivable TotalReceived Expenditures Subrecipients Adjustments Balances Receivable) Payable Grantor June 30, 2016 Expenditures

34,650,242.14$ 38,341,995.00$ (3,691,752.86)$ 3,691,752.86$ 38,341,995.00$ 2,734,339.33 3,025,665.00 (291,325.67) 291,325.67 3,025,665.001,255,638.11 1,389,418.00 (133,779.89) 133,779.89 1,389,418.00

189,538.89 209,733.00 (20,194.11) 20,194.11 209,733.0041,832.97 46,290.00 (4,457.03) 4,457.03 46,290.0041,832.97 46,290.00 (4,457.03) 4,457.03 46,290.00

3,716,328.08 38,341,995.00293,264.96 3,025,665.00

134,670.43 1,389,418.0020,328.54 509,733.004,486.69 46,290.004,486.69 46,290.00

43,086,989.80 43,059,391.00 - - - (4,145,966.59) - - 4,145,966.59 86,418,782.00

280,009.00 (280,009.00) 283,586.00279,934.00 349,781.00

279,934.00 280,009.00 - - - (280,009.00) - - - 633,367.00

963,852.89 1,066,545.00 (102,692.11) 102,692.11 1,066,545.00103,375.71 1,066,545.00

79,906.00 (79,906.00) 79,906.0056,786.00 56,786.00

1,124,014.60 1,146,451.00 - - - (182,598.11) - - 102,692.11 2,269,782.00

2,731,563.21 2,875,504.70 (143,941.49) 2,875,504.70146,093.87 2,927,848.45

2,877,657.08 2,875,504.70 - - - (143,941.49) - - - 5,803,353.15

47,368,595.48 47,361,355.70 - - - (4,752,515.19) - - 4,248,658.70 95,125,284.15

1,065,253.70 1,199,062.84 (69,655.30) 242,723.80$ 1,199,062.84 38,480.90 1,031,349.66

1,103,734.60 1,199,062.84 - - - (69,655.30) 242,723.80 - - 2,230,412.50

4,911.00 4,902.75 0.58$ 8.83$ 4,902.17 1,662.20$ 6,023.80

4,911.00 4,902.75 - 0.58 1,662.20 - - 8.83 - 10,925.97

2,236.00 1,953.00 283.00 1,953.00 417.50 3,710.50

2,236.00 1,953.00 - - 417.50 - - 283.00 - 5,663.50

7,740.00 7,662.60 77.40 7,662.60 122.36 12,113.64

7,740.00 7,662.60 - - 122.36 - - 77.40 - 19,776.24

51,608.00 19,288.80 32,319.20 19,288.80 13,984.00 3,799.97 10,184.03 3,799.97

5,037.00 (5,037.00) 5,037.00

11,645.20 34,936.00 7,517.04 11,475.00

2,035.00 (0.37) 2,035.00

67,627.00 28,125.77 - (0.37) 19,162.24 (5,037.00) - 42,503.23 - 76,571.77

14,655.00 7,495.00 7,160.00 7,495.00 22,574.00 4,096.40 18,477.60 4,096.40 8,169.00 2,301.75 5,867.25 2,301.75

15,637.95 3,799.05 7,925.07 1,490.93 5,945.26 11,699.74

45,398.00 13,893.15 - - 29,508.28 - - 31,504.85 - 30,882.87

(Continued)

MemoBalance at June 30, 2016

158

UnearnedProgram or Revenue/ Carryover/

State Grantor / Grant or State Award (Accounts Due to (Walkover)Program or Cluster Title Project Number Amount From To Receivable) Grantor Amount

Grant Period

26400


TOWNSHIP OF WINSLOW SCHOOL DISTRICTSchedule of Expenditures of State Financial Assistance


Special Revenue Fund (Cont'd):N.J. Nonpublic Security Aid 16-100-034-5120-066 2,150.00$ 7/1/15 6/30/16

School Based Youth Program:School Based Youth Program 16-100-054-7500-068 273,128.00 7/1/15 6/30/16School Based Youth Program 15-100-054-7500-068 275,578.00 7/1/14 6/30/15 8,353.95$

Total School Based Youth Program - 8,353.95 -

Total Special Revenue Fund 266,362.11$ 59,226.53 -

Capital Projects Fund:New Jersey School Development Authority (SDA):

School Roofing Projects:High School 5820-010-09-0ZZO 1,804,646.00 06/04/10 Project End (1,464,921.35) Middle School 5820-010-09-0ZZP 1,985,111.00 06/04/10 Project End (1,125,496.91)

High School Window Replacement 5820-010-14-G1NG 555,391.00 05/23/14 Project End (450,486.57) School No. 2 Courtyard Drainage Project 5820-040-14-G1NJ 28,159.00 05/23/14 Project End (1,087.38) High School ADA & Security Project 5820-010-14-G1NH 345,891.00 01/16/15 Project End (12,552.69) Middle School Window and HVAC Replacement Project 5820-020-14-G1NI 1,175,148.00 01/16/15 Project End (47,856.11)

Total Capital Projects Fund (3,102,401.01) - -

Debt Service Fund:Debt Service Aid Type II 16-495-034-5120-075 1,429,048.00 7/1/15 6/30/16 - - -

Enterprise Fund:State School Lunch Program 16-100-010-3350-023 27,609.66 7/1/15 6/30/16State School Lunch Program 15-100-010-3350-023 27,240.69 7/1/14 6/30/15 (2,652.76)

Total Enterprise Fund (2,652.76) - -

Total State Financial Assistance subject to Major Program Determination for State Single Audit (7,598,446.63) 59,226.53 -

State Financial Assistance not subject to Calculation for Major Program Determination for State Single Audit:

General Fund (Non-Cash Assistance):New Jersey Department of the Treasury:

On-behalf T.P.A.F. Pension - Normal Cost 16-495-034-5094-002 2,817,840.00 7/1/15 6/30/16On-behalf T.P.A.F. Pension - Non Contributory Insurance 16-495-034-5094-004 140,367.00 7/1/15 6/30/16On-behalf T.P.A.F. Pension - Post-Retirement Medical 16-495-034-5094-001 3,522,407.00 7/1/15 6/30/16

Total General Fund (Non-Cash Assistance) - - -

Total State Financial Assistance (7,598,446.63)$ 59,226.53$ -$

The accompanying Notes to Financial Statements and Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule.

159

Schedule K-4

UnearnedPassed- Repayment of Revenue/ Budgetary Cumulative

Cash Budgetary Trough to Prior Years' (Accounts Interfund Due to Receivable TotalReceived Expenditures Subrecipients Adjustments Balances Receivable) Payable Grantor June 30, 2016 Expenditures

MemoBalance at June 30, 2016

2,150.00$ 1,795.00$ 355.00$ 1,795.00$

273,128.00 269,144.19 3,983.81 269,144.19 8,353.95$ 267,224.05

273,128.00 269,144.19 - - 8,353.95 - - 3,983.81 - 536,368.24

1,506,924.60 1,526,539.30 - 0.21$ 59,226.53 (74,692.30)$ 242,723.80$ 78,716.12 - 2,912,396.09

(1,464,921.35) 1,464,921.35$ 1,464,921.35(1,125,496.91) 1,125,496.91 1,125,496.91

5,001.93 (455,488.50) 455,488.50 455,488.5025,013.34 (26,100.72) 26,100.72 26,100.72

134,874.65 (147,427.34) 147,427.34 147,427.34857,354.54 (905,210.65) 905,210.65 905,210.65

- 1,022,244.46 - - - (4,124,645.47) - - 4,124,645.47 4,124,645.47

1,429,048.00 1,429,048.00 - - - - - - 1,429,048.00

23,902.19 27,609.66 (3,707.47) 27,609.66 2,652.76 27,240.69

26,554.95 27,609.66 - - - (3,707.47) - - - 54,850.35

50,331,123.03 51,366,797.12 - 0.21 59,226.53 (8,955,560.43) 242,723.80 78,716.12 8,373,304.17 103,646,224.06

2,817,840.00 2,817,840.00 2,817,840.00 140,367.00 140,367.00 140,367.00

3,522,407.00 3,522,407.00 3,522,407.00

6,480,614.00 6,480,614.00 - - - - - - - 6,480,614.00

56,811,737.03$ 57,847,411.12$ -$ 0.21$ 59,226.53$ (8,955,560.43)$ 242,723.80$ 78,716.12$ 8,373,304.17$ 110,126,838.06$

160

26400 Exhibit K-5

TOWNSHIP OF WINSLOW SCHOOL DISTRICTNotes to Schedules of Expenditures of Federal Awards and State Financial Assistance


Note 1: BASIS OF PRESENTATION

The accompanying schedules of expenditures of federal awards and state financial assistance include federal and state award activity of the Township of Winslow School District (hereafter referred to as the “School District”). The School District is defined in note 1 to the School District's basic financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the schedules of expenditures of federal awards and state financial assistance. Because these schedules present only a selected portion of the operations of the School District, it is not intended to and does not present the financial position and changes in operations of the School District.

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying schedules of expenditures of federal awards and state financial assistance are presented using the budgetary basis of accounting, with the following exceptions: programs recorded in the capital projects fund are presented on the modified accrual basis of accounting and programs recorded in the enterprise funds are presented using the accrual basis of accounting. These bases of accounting are described in note 1 to the School District's basic financial statements. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The School District has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance.

Note 3: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS

The basic financial statements present the general fund and special revenue fund and capital projects fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made.

The general fund is presented in the accompanying schedules on the modified accrual basis with the exception of the revenue recognition of the one or more deferred June state aid payments in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes, payments arenot recognized until the subsequent budget year due to the State deferral and recording of the one or more June state aid payments in the subsequent year. The special revenue fund is presented in the accompanying schedules on the budgetary basis which recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. The special revenue fund also recognizes the one or more June state aid payments in the current budget year, consistent with N.J.S.A. 18A:22-44.2. The capital projects fund is presented in the accompanying schedules on the modified accrual basis of accounting.

161

26400 Exhibit K-5Notes to the Schedules of Expenditures of Federal Awards

and State Financial Assistance (Cont'd)

Note 3: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS (CONT’D)

The net adjustment to reconcile expenditures from the budgetary basis to the GAAP basis is $28,282.40 for the general fund and $29,409.86 for the special revenue fund. See exhibit C-3, notes to required supplementary information, for a reconciliation of the budgetary basis to the modified accrual basis of accounting for the general and special revenue funds.

Awards and financial assistance expenditures reported in the School District's basic financial statements on a GAAP basis are presented as follows:

Fund Federal State Total

General 312,153.43$ 53,841,969.70$ 54,154,123.13$

Special Revenue 3,198,956.02 1,521,123.84 4,720,079.86

Capital Projects 1,022,244.46 1,022,244.46

Debt Service 1,429,048.00 1,429,048.00

Food Service 1,770,058.12 27,609.66 1,797,667.78

Total Awards and Financial Assistance 5,281,167.57$ 57,841,995.66$ 63,123,163.23$

Note 4: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.

Note 5: ADJUSTMENTS

Amounts reported in the column entitled "adjustments" represent rounding adjustments.

Note 6: REIMBURSED AND ON-BEHALF PAYMENTS

During the fiscal year ended June 30, 2016, the School District was the recipient of federal and state assistance that represented either a reimbursement to the School District or payments made on-behalf of the School District. Revenues and expenditures reported under the federal food distribution program represent the current year value received and the current year distribution, respectively, of American-grown United States Department of Agriculture foods utilized in the School District’s food service program. TPAF Social Security Contributions represents the amount reimbursed by the State for the employer’s share of social security contributions for TPAF members for the fiscal year. Lastly, the School District has recognized as revenues and expenditures on-behalf payments made by the State for normal costs, non-contributory insurance, and post-retirement medical costs related to TPAFmembers.

Note 7: MAJOR PROGRAMS

Major programs are identified in the Summary of Auditor's Results section of the Schedule of Findings and Questioned Costs.

162

Exhibit K-6

Section 1- Summary of Auditor's Results

Financial Statements

Type of auditor's report issued Unmodified

Internal control over financial reporting:

Material weakness(es) identified? yes x no

Significant deficiency(ies) identified? yes x none reported

Noncompliance material to financial statements noted? yes x no

Federal Awards

Internal control over major programs:



Type of auditor's report issued on compliance for major programs Unmodified

Any audit findings disclosed that are required to be reported in accordance with Section 516 of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)? yes x no

Identification of major programs:

CFDA Number(s) FAIN Number(s) Name of Federal Program or Cluster

93.778 1605NJ5MAP Medical Assistance Program (SEMI)

Child Nutrition Cluster:

10.555 16161NJ304N1099 National School Lunch Program

10.555 16161NJ304N1099 National School Lunch Program - Food Distribution

10.553 16161NJ304N1099 National School Breakfast Program

10.559 16161NJ304N1099 Summer Food Service Program

Dollar threshold used to determine Type A programs 750,000.00$

Auditee qualified as low-risk auditee? x yes no

26400

TOWNSHIP OF WINSLOW SCHOOL DISTRICTSchedule of Findings and Questioned Costs


163

Exhibit K-6

Section 1- Summary of Auditor's Results (Cont'd)

State Financial Assistance

Internal control over major programs:



Type of auditor's report issued on compliance for major programs Unmodified

Any audit findings disclosed that are required to be reported in accordance with New Jersey Circular 15-08-OMB? x yes no

Identification of major programs:

GMIS Number(s) Name of State Program

16-495-034-5120-078 State Aid Public - Equalization Aid

16-495-034-5120-089 State Aid Public - Special Education Categorical Aid

16-495-034-5120-084 State Aid Public - Security Aid

16-495-034-5120-085 State Aid Public - Adjustment Aid

16-495-034-5120-097 State Aid Public - Per Pupil Growth Aid

16-495-034-5120-098 State Aid Public - PARCC Readiness Aid

16-495-034-5120-086 Preschool Education Aid

Dollar threshold used to determine Type A programs 1,541,003.91$

Auditee qualified as low-risk auditee? x yes no


26400


Schedule of Findings and Questioned Costs

164

26400 Exhibit K-6



Section 2- Schedule of Financial Statement Findings

This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to the financial statements that are required to be reported in accordance with Government Auditing Standardsand with audit requirements as prescribed by the Division of Administration and Finance, Department of Education, State of New Jersey.

None

165

26400 Exhibit K-6



Section 3- Schedule of Federal Award Findings and Questioned Costs

This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance, including questioned costs, related to the audit of major Federal programs, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

None

166

26400 Exhibit K-6



Section 4- Schedule of State Financial Assistance Findings and Questioned Costs

This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance, including questioned costs, related to the audit of major State programs, as required by State of New Jersey Circular 15-08-OMB.

Finding No. 2016-001

Information on the State ProgramState Department of Education: State Aid Public – Cluster (FY2015-2016):

Equalization Aid GMIS No. 16-495-034-5120-078Special Education Categorical Aid GMIS No. 16-495-034-5120-089Security Aid GMIS No. 16-495-034-5120-084Adjustment Aid GMIS No. 16-495-034-5120-085Per Pupil Growth Aid GMIS No. 16-495-034-5120-097PARCC Readiness Aid GMIS No. 16-495-034-5120-098

Criteria or Specific RequirementSchool Districts must complete the Application for State School Aid (A.S.S.A.) in accordance with instructions provided by the Division of Administration and Finance, Department of Education. School Districts must complete a set of supporting workpapers that document the compilation of data and provide an audit trail for testing the enrollments reported on the A.S.S.A. report.

ConditionThe School District’s reported enrollment in the category of “Sent to Private School for the Disabled” in the October 15, 2015 Application for State School Aid (A.S.S.A.) could not be verified to supporting documents.

Questioned CostsNone.

ContextThe School District could not provide tuition contracts with approved Private Schools for the Disabled or private school tuition bills for October 2015 for six students that were reported as Sent to Private School for the Disabled.The sample was not statistically valid.

EffectThe numbers of sent students were overstated in the October 15, 2015 Application for State School Aid (A.S.S.A.)and may have an impact on the School District’s State Aid allocation.

CauseSchool District’s workpaper in the category of Sent to Private School for the Disabled did not show student names in detail.

RecommendationThat the School District follow their written procedures and maintain adequate workpapers to support studentenrollment data reported in each category of the A.S.S.A.

View of Responsible Officials and Planned Corrective ActionThe responsible officials agree with the finding and will address the matter as part of their corrective action plan.

167

26400 Exhibit K-7

TOWNSHIP OF WINSLOW SCHOOL DISTRICTSummary Schedule of Prior Year Audit Findings

and Questioned Costs as Prepared by Management

This section identifies the status of prior year findings related to the financial statements and federal awards and state financial assistance that are required to be reported in accordance with Government Auditing Standards, Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and State of New Jersey Circular 15-08-OMB.

None

168

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